Kobex Capital: Insider buying continues

Kobex Capital (formerly Kobex Minerals) has a market cap of $23M and is traded on the TSX Venture.  It is a pile of cash (and 1 stock) trading at a very obvious discount to liquidation value.  I’ve written up the company in the past.  Paul van Eeden continues to buy shares of the company via Cranberry Capital, which is a joint venture between van Eeden and Altius Minerals.  It’s possible that the end game is a liquidation of the company if the share price continues to be depressed.  This is because Altius Minerals may eventually wish to withdraw money from Cranberry Capital to pay down its debt.

kobex-insider-buying-continues

I think what will happen is that van Eeden will continue to buy shares of the company on the open market.  If the share price stays low, I think that a liquidation will eventually happen because it will be easy money for Cranberry.  If the share price goes up, then investors can flip their shares for a profit.

*Disclosure:  I am long KXM.

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One thought on “Kobex Capital: Insider buying continues

  1. Pingback: Kobex Capital: A pile of cash, trading at a discount, with an impending catalyst | Glenn Chan's Random Notes on Investing

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