Karl

Learn a bit everyday

[Josh Crumb 🆔++ @JoshCrumb]

We’ve never paid for social media “analyst” influence or newsletter write-ups on X (formerly twitter). We haven’t initiated or edited any of the reports on X/Substack/Reddit/SeekingAlpha. We haven’t paid for podcast appearances. This is all basically normal for early stage corporate PR these days but we never chose to engage this activity or strategy regardless; earned and organic is harder but always better than paid (unlike the other side’s history of unethical contracted-tactics historically).

All of our value investors doing the deep DD are transparent, intellectually honest and engage with assumptions and mistakes. Abaxx engagement isn’t about “retail”, body is dumping on reports, never was, the story is too complicated with no real comps. It’s about skin-in-the-game value investor family offices, large and small. $ABXX.TO #29ers

[Karl @New_User543]

#bestjobintheworld happy Father’s Day

[Mark @Mark_IKN]

Happy Father's Day. Best job in the world.

[Karl @New_User543]

@RealDrJaneRuby @JoshCrumb @thesherlockview We’re so close to the goal!

[Karl @New_User543]

@JoshCrumb Yay to Q4 tech! Boo to bad faith shorts!! Some of the #29ers have a new game on https://t.co/ihIbTYF7zA - see who can block the sock puppet quickest while others seem to like playing with them!😆

[Josh Crumb 🆔++ @JoshCrumb]

Thanks for the deep analysis, Sherlock.

This is why I find the bad-faith ‘research’ attacks, at this time, so infuriating. The Company has never been stronger, with more runway for unlocking the next value transformations that Sherlock lays out on our tech and growing TAM-potential products on the exchange, that is now built with growing operating leverage for each new product to leverage the sunk cost of the past 8 years (dyodd, the company had no part in its preparation and they state their own assumptions clearly).

As Sherlock laid out, our current valuation risk-range does not require current profitability on trading revenues. That was never our pitch, we’ve always been transparent on how markets are built. We literally built a weekly podcast (with many people dunking on us for it) because we knew the information hurdles on our cold-start problems were very high, where nobody else has built such a full-stack commodity exchange and clearinghouse in more than a decade.

However, with a +six quarter runway, the ‘first five sided network’ is now built (what I call a [near] impossible object), seven years at the exchange greenfield of overcoming oligopolistic and steep regulatory challenge, after challenge, to build perhaps the first ever greenfield full-stack exchange and clearinghouse for physical commodities. Nearly every part of the five-sided-network development is with highly concentrated participants, from the few and far between clearing software vendors who were hesitant to work with us up-front and frankly couldn’t get the job done the first time around and added another year to the dilution (Cinnober, Nasdaq), to trading ISVs (TT, Trayport, CQG etc) who often didn’t get back to us for +6 months, to finding multiple FCMs willing to go first on a new physical clearinghouse where they are taking the commodity delivery risk—and needing three to launch—to global data distributors (Trading View, IPP, LSEG, Bloomberg) who took multiple years for connectivity, and last but not least the handful of major physical commodity trading houses of scale who helped us write our contracts but still are waiting to trade until there is more liquidity — and none of these essential network nodes wanted to start their side of the investment in us until first we were fully regulated…and then some until we have volumes….chicken and egg problems everywhere that is now overcome and we are finally at the fun part of scaling and growing operating leverage on our wide-moat infrastructure.

…and now we are also staring the fun stage of the tech as well this fall. This was really the last stage for FUD for the chart-shorting HFs to try and harm us, so they went all in after six months of hiring ‘research’ (‘hit squads’) with a dirty, bad-faith hand lying about our financials and sending to our ecosystem partners, to try harm our reputation and harm our shareholders. But nothing will shake us from our path. And the path ahead is bright.
$ABXX.TO #29ers #WorldBuildersOrBust

[Karl @New_User543]

@Greenacres1000 @JoshCrumb @thewatsonview @thesherlockview True, can’t forget @JosephTMetcalf, @James_Duade, and @PKsNYC, learned a ton about $ABXX.TO from them

Also, @nobenchmark for https://t.co/KpIIH9qRKq And finally, our favourite Simpsons character @RFitz8990, king of getting blocked by shorts 😝

And so many more… Thank you all!

[Karl @New_User543]

As I feel lucky to have a CEO Like @JoshCrumb, I feel he is very lucky to have a shareholder like @thewatsonview ,@thesherlockview Thank you for taking the time to create this masterpiece!

[Sherlock @thesherlockview]

https://t.co/QREWEjl6Ap

[Karl @New_User543]

@NotoriousBaggie @James_Duade @thesherlockview Thank you, Is it just opening new mines, or are existing mines struggling as well

[Karl @New_User543]

@NotoriousBaggie @James_Duade @thesherlockview How’s that, even with a partnership? Is it just not worth what it would cost to take it out of the ground? Genuinely curious?

[Karl @New_User543]

@thewatsonview @JosephTMetcalf @thesherlockview Best one yet!!

[Karl @New_User543]

@thesherlockview Sherlock, this is the best one yet. I didn’t know you could teach me more than you already have, but you did it. Thank you very much!

[James Duade @James_Duade]

Fantastic analysis, thanks for sharing @thesherlockview. Regarding liquidation value I would add that Abaxx also owns -20% of Base Carbon, ~20% of MH and a portion of Artex, which together may be worth around $50M USD, and add to their asset base.

In terms of royalties, Abaxx does own the 2.5% royalty on Base Carbon revenues, and 2% revenue royalty on Abaxx Exchange, which could form the basis on their own for a fairly powerful revenue stream, and one that could be spun out on its own—you could add iron ore royalties and future royalty streams to this mix as well.

Thanks again for the amazing writeup, much appreciated!

[FNS @FNSgetrichordie]

$ABXX.TO
Let's get to know the criminals shorting Abaxx right now. First post of more to come as I feel like it. If anyone is worried about the current short and distort consortium being led by Viceroy I would invite you to examine the history and character of the people involved.

If you keep following the bread crumbs what you'll realize is that all this has happened before. Abaxx is just the latest victim.

A great place to start - https://t.co/3pVzQn8K7B

This article -- written by investigative journalist Roddy Boyd who knew Fraser Perring personally as they met shorting Wirecard -- really let's you get to know Fraser Perring the pathological liar. It's a long read but you'll get some gems like this one:

" “Even if I wanted to [engage in insider trading], I don’t know that I’ve heard a more cock-and-bull story in my life,” recalled Earl, who added that he still wondered what had prompted Perring to think he might believe his tale."

By the end of the article you may reach the same conclusion I did. Fraser Perring is morally bankrupt and nothing he says or does can be trusted.

The reporting in the above article was : "... accomplished with a trip to England, was drawn from interviews with 15 portfolio managers and research analysts who have dealt with Perring over the past four years. Many of those interviewed provided corroborating documentation, including emails, notes, and screen captures of texts and comments on encrypted messaging services."

[FNS @FNSgetrichordie]

$ABXX.TO
Part 2 of Know Your Short - Let's get to know Viceroy Research

Yesterday we learned about Fraser Perring's loose relationship with morality. With that in mind Viceroy's business model falls into place.

Today I would invite you to look at https://t.co/x1oX1fRTcu

This article takes us back to 2018 where Intellidex published a paper on Viceroy Research following a short and distort campaign on Capitec in South Africa.

Some important things we learn:

Hedge funds likely pay Viceroy to publish research. The authors note that the volume of work published by Viceroy is not possible for a team of 3. "Viceroy's research output is prolific...given that it consists of three individuals with limited financial market experience and no professional experience in the subjects it covers, it is not plausible that the single team could produce the volume and variety of research published under Viceroy's name."

What does Viceroy offer? Publicity and legal protection for hedge funds. Viceroy can do things the hedge funds cannot be seen to do. They are a "...outsourced carrier of legal risk." Because, "As Viceroy has no legal registration itself, it remains difficult to target."

What does Viceroy get in return? Money and status.

Along with status comes a reduced requirement for quality research. Once status is gained Viceroy's claims carry more weight. Market effects can be gained based on Viceroy's "status" alone.

Reduced quality of research comes to the fore in the case of Viceroys Capitec report where the authors note:"...there are reasonable grounds to argue that Viceroy's function was to publish distorted information with the ambition of negatively affecting the share price, which would amount to illegal market manipulation."

History doesn't repeat itself, but it does rhyme.

[Karl @New_User543]

@FNSgetrichordie @rares_andrei1 Personally, I trust your report more than viceroys or the sock puppet. Keep up the good work!

[Karl @New_User543]

@STUARTTURLEY16 @JoeRaia5 Yea, you can really hear the passion he has/had for everything he’s done!

[STUART TURLEY - Energy Podcast Host @STUARTTURLEY16]

The Future of Commodities, LNG, and Trading - Joe Raia, Chief Commercial Officer, Abaxx Exchange https://t.co/7nbysXPL30

This was a fun discussion about the future of Energy Security, LNG, and the importance of getting delivery on LNG, gold, and silver. @JoeRaia5 hit it out of the park.

[Karl @New_User543]

@greentardscycle @Veekay0606 @JoshCrumb That’s a nice list of shareholders!

[Watson @thewatsonview]

Hoping to post another article tomorrow morning on $ABXX.TO called “A Free Call option” to give you the full Sunday to read it. Make sure to follow @thesherlockview as I’ll only post it there. Read time is about 20 minutes.