NXS - Nexus Energy

[Sean K]

Hi all
i am just starting out and looking to buy my first stock do you guys think NXS is still good to buy in at its current price at 43c as i have seen some of the other posts pridicting it to go to 80c
Thanks for any advice

Please disregard any 'advice' and price targets and valuations that are not accompanied by some robust technical or fundamental analysis. Otherwise they are just guestimates and potentially dangerous. No one here is able to give you financial advice, only their lay opinion on the potential value of the stock. Good luck!

 

[alex90]

Haha Nexus is "going through the mill" is it jbocker?
Not sure about you, but new management, three massive projects in the pipeline and ridance of debt seems like progress enough for me to remain confident in this stock!

 

[gooner]

Haha Nexus is "going through the mill" is it jbocker?
Not sure about you, but new management, three massive projects in the pipeline and ridance of debt seems like progress enough for me to remain confident in this stock!

New management? As far as I know, it is the same management that got us in this mess in the first place

I hold NXS

 

[jackson8]

New management? As far as I know, it is the same management that got us in this mess in the first place

I hold NXS

and on top of that you have aed's management to deal with as well

not such a great picture painted there

note ' have been burnt with aed ' so may be a bit sceptical of their ability and future performance

 

[mastatrada]

and on top of that you have aed's management to deal with as well

not such a great picture painted there

note ' have been burnt with aed ' so may be a bit sceptical of their ability and future performance

So nexus's and aed's temporary financial ills were all the fault of the management were they? That's like saying the recession in Australia was all Kevin Rudd's fault! They are just a share responding to market and environmental stimuli, there's no point getting all emotional about them and mistrusting the people in charge.

 

[jbocker]

Haha Nexus is "going through the mill" is it jbocker?
Not sure about you, but new management, three massive projects in the pipeline and ridance of debt seems like progress enough for me to remain confident in this stock!

Hopefully it has already gone through the mill, and its price might be good (ie not much more downside). Its just not for me yet, dont know if I would make it my first stock to buy at this time (re Stompa's query), but could suit Stompa's risk profile. Sincerely hope NXS does well and you good people have a great investment.

 

[gooner]

So nexus's and aed's temporary financial ills were all the fault of the management were they? That's like saying the recession in Australia was all Kevin Rudd's fault! They are just a share responding to market and environmental stimuli, there's no point getting all emotional about them and mistrusting the people in charge.

mastatrada

Nexus entered into drilling rig contracts that it could not afford to pay for. It is basic financial management to ensure you have funding locked down before signing on the dotted line. Anyone who buys a house without first having finance is an idiot - again basic financial management.

Personally am waiting for a reasonable exit point and then I am out of there as I do not trust management.

Hold NXS

 

[jman2007]

mastatrada

Nexus entered into drilling rig contracts that it could not afford to pay for. It is basic financial management to ensure you have funding locked down before signing on the dotted line. Anyone who buys a house without first having finance is an idiot - again basic financial management.

Personally am waiting for a reasonable exit point and then I am out of there as I do not trust management.

Hold NXS

gooner,

As is my understanding, Transocean terminated the contract themselves, NXS's angle is that they vigorously dispute Transocean's right to have terminated the contract. Add into the mix Sedco Forex's damages claim against NXS, and we suddenly have a very confusing and complicated legal battle brewing. The Transocean Legend was booked for about 90 days from memory, being charged out at about $450K per day.

As far as the management is concerned, they did a reasonable job in extricating NXS from potentially an even worse situation imo. The core value of Crux has been preserved, and they achieved a fair, if not fantastic, value for the part sale of Longtom.

But not out out of the woods yet by any means.

 

[gooner]

gooner,

As is my understanding, Transocean terminated the contract themselves, NXS's angle is that they vigorously dispute Transocean's right to have terminated the contract. Add into the mix Sedco Forex's damages claim against NXS, and we suddenly have a very confusing and complicated legal battle brewing. The Transocean Legend was booked for about 90 days from memory, being charged out at about $450K per day.

As far as the management is concerned, they did a reasonable job in extricating NXS from potentially an even worse situation imo. The core value of Crux has been preserved, and they achieved a fair, if not fantastic, value for the part sale of Longtom.

But not out out of the woods yet by any means.

jman2007

Fair comments. Sedco terminated on the basis of Nexus being unable to perform, presumably due to lack of funds. Certainly, they did not have enough funds to pay for the rig without a sale of Crux or Longtom - IMO dodgy to rely on asset sales for ongoing costs. However, I agree the outcome could have been worse.

I actually bought some more shares at 29 cents which averaged my holding cost down to 51 cents, although I also sold some pre trading halt at a loss, so my "real holding cost" is somewhere in the 60 cent range. I think I have a reasonable chance of exiting at a profit. Have not decided on my exit price yet - problem for me is trying to put a value on Crux. Hopefully, there is a partial sale to put a value on it for me. Or a takeover..........

Hold NXS

 

[jackson8]

So nexus's and aed's temporary financial ills were all the fault of the management were they? That's like saying the recession in Australia was all Kevin Rudd's fault! They are just a share responding to market and environmental stimuli, there's no point getting all emotional about them and mistrusting the people in charge.

my comments are more aimed at aed

have a read through the aed thread. i am not the only one to have little trust in their management

too much to write here the thread says it all

 

[stock nub]

gooner,

As is my understanding, Transocean terminated the contract themselves, NXS's angle is that they vigorously dispute Transocean's right to have terminated the contract. Add into the mix Sedco Forex's damages claim against NXS, and we suddenly have a very confusing and complicated legal battle brewing. The Transocean Legend was booked for about 90 days from memory, being charged out at about $450K per day.

As far as the management is concerned, they did a reasonable job in extricating NXS from potentially an even worse situation imo. The core value of Crux has been preserved, and they achieved a fair, if not fantastic, value for the part sale of Longtom.

But not out out of the woods yet by any means.

Hey never heard of the Sedco Forex damages.

Can you explain further what these are?? Was there an announcement about these?

 

[jman2007]

Hey never heard of the Sedco Forex damages.

Can you explain further what these are?? Was there an announcement about these?

From what I can gather, Sedco Forex is a subsidiary of Transocean Inc.

The following statement I found on another forum, which reported that it formed part of a presentation that Ian Tachos gave to a broker from Patterson's Securities last Friday. Obviously I cannot vouch for the cedibility of the information, but it sounds pretty legit to me:

NXS believes that the cancellation of the TOL was under "mirky circumstances" with Transocean using NXS' cash flow issues as an excuse to cancel the contract when in actual fact they turned the ship around and headed back to Indo for repairs, as the ship was not compliant with Australian maritime laws and would not have been allowed to operate in Aussie waters. Now that they have sent the ship to KAR and Conocco the maximum liability would be up to around 30 days.

 

[jman2007]

Fair comments. Sedco terminated on the basis of Nexus being unable to perform, presumably due to lack of funds. Certainly, they did not have enough funds to pay for the rig without a sale of Crux or Longtom - IMO dodgy to rely on asset sales for ongoing costs. However, I agree the outcome could have been worse.

gooner,

Note that the appointment to the NXS Board of Michael Arnett comes as no surprise either imo, as he was a "former partner of International Law Firm Deacons where he practiced in the oil and gas sector for many years... He was also the President, Vice President, Treasurer and Secretary of the Australian Mining and Petroleum Law Association (WA Branch). (Quotes from NXS market release 28/05/09).

So probably not a bad guy to have come out and bat for you , let's hope he can also read Sedco the full riot act!

 

[gooner]

According to the recent presentations, Nexus is due to become a producer very soon. This might provide a bit of a boost to the share price.

However, I think a farm out of Crux is key as this monetises the assets and provides a good base to form a value of the overall company.

Hold NXS

 

[mastatrada]

well gooner, I stand corrected to some extent in my defence of the nexus management. Letting some stupid contractual dispute hold up the Longtom project (todays announcement) for 3 weeks when it is so close to completion has to take some very special individuals indeed.

 

[gooner]

well gooner, I stand corrected to some extent in my defence of the nexus management. Letting some stupid contractual dispute hold up the Longtom project (todays announcement) for 3 weeks when it is so close to completion has to take some very special individuals indeed.

mastatrada

it appears they are not competent - a takeover by a competent management team would be welcome - STO, WPL, anyone.

I am only still in because I can't see them destroying too much more value and assets are way undervalued. Hoping someone else will see it and buy them out.

 

[UPKA]

mind u guys that NXS is negotiating with other parties for a farmin on the Crux project. At the moment Shell is probably the most likely buyer to buy out Crux project. Compare to the buy volume last month, the sell down is rather small, the drop in SP is due to the lack in buyers. I think it's just a matter of time before the farmin/takeover announcement comes out...

disclosure: I do hold NXS.

 

[kkyyoo]

so what's happening at today's trade

Some institutional investor bought in?

Went up 17% today ...

 

[chiraag]

Looks like there's some speculation that a partner for Crux has been found - there's an article on bloomberg (I can't post links since I haven't made enough posts)

 

[UPKA]

Looks like there's some speculation that a partner for Crux has been found - there's an article on bloomberg (I can't post links since I haven't made enough posts)

FYI:

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a5PjMFCOMQ8I

(i need 100 letters for this reply)