Exxe Group Inc (AXXA)

[davied25]

Very valid points. But they're not the ONLY ways to drive long term value, in my opinion. I think its more nuanced than the hard lines you're drawing. Don't miss the bigger narrative.

1. Reduce the OS / 2. Share buyback.

I've received email responses and I think there was a reply on Twitter as well - it's not part of the company's strategy AT THIS TIME. The current strategy is to heavily acquire undervalued assets providing multiple revenue streams that can grow over time. This current phase of acquisition can require cash, debt, and equity financing, as the company has told us. Small increases to the OS are worth it if the long term impact can produce many multiples in return. You're smart enough to know where I'm going with this. It's the balance of leveraging time & money for the greatest long term gain.

For example, a share buyback over, say, the next 6 months, would increase the share price without neccesarily changing the business fundamentals/bottom line. Obviously less shares inherently increases the pps, and it would add to shareholder confidence which will increase the price as well. No matter when a buyback occurs, it has diminishing returns (the higher the pps, the more cash it requires to sustain).

Now picture what the company seems to be doing: adding revenue generating assets for set prices that combine multiple funding methods to reduce the company's risk exposure, all while leveraging the potential for uncapped returns over the life of the assets.

3. Now think about how much greater of an impact audited financials will have when there are MILLIONS more in assets than there potentially would have been had cash been used for a share buyback earlier on. Plus audited fins allow for the uplist to QB (or higher) as we know, to become a fully reporting SEC company. Now the company has more options to leverage their cashlow, like share buybacks (via Form 4s), etc. Future scenarios are all my opinion, of course.

The current market cap seems to be WAY under book value (meaning what would be left if tangible assets were sold off and liabilities paid). I've put my money where my mouth is and bought shares at the ask 27 separate times and have a mountain of shares that I'm satisfied with.

Thoughts?