I seldom post but have owned OMEX since summer of '01 after a meeting with Jim McDougald...the then chairman. After numerous meetings with John Morris I became intrigued with the prospects for this company in its potential to pioneer a brand new industry.
Like most things I never thought it would take this long or be this difficult...but I guess this is what pioneering is all about.
I originally purchased it based on the Sussex potential. The Republic was a big surprise and a welcome one. Jim exited the stock for about 10X his investment but I stayed in...fortunately or unfortunately, and have weathered the storm since.
Now, I believe they are finally on the vanguard of proving part of their business model, ie... the ability to replicate successful discovery and excavation of high-value targets. One of the biggest reasons for this success has been a dramatic improvement in underwater technology, i.e... their ability to see more clearly underwater. I remember when John Morris told me about their first photomosaic of the Sussex saying it took more than a month to complete. Within a couple of years the technology had improved so much it took only a few days for the same mosaic of the Republic to be shot. Amazing.
Now, they are the clear frontrunners of an emerging industry, IMO...that of deepwater underwater salvage; mapping of the ocean floor; and archaelogical excavation and preservation. Many still spout they are simply treasure hunters which is far from the truth. Yes, they are determined to build a successful and profitable commercial enterprise but equally important is their desire to discover, preserve and perform archaelogical endeavors which will benefit history and our understanding of it.
With somewhere in the neighborhood of 50 million shares out this company's potential value hasn't even scratched the surface, IMO. Currently, they have potential to acquire rights to several billion dollars (numismatic) of cultural and trade goods through the Sussex, Mercedes, HMS Victory and others. They are on the leading edge of a wave that will build and attract more attention with every month that passes. This all comes at a time when most of the developed world is looking for anything good. OMEX is in the right place at the right time and should amply reward shareholders for their patience in the months and years ahead, IMO.
The next big challenge will be the marketing of their assets...the other part of their model. This is a much bigger challenge but based on their ingenuity and ability to attract very skilled talent I believe they too, will succeed in this. This part of their model will, however, take years to accomplisih and refine. Should be a very interesting few years ahead.
gku98- superb post. i have been a shareholder for several years now, and even though at first i viewed omex as a short term play, i now believe- for the reasons you pointed out, to be a solid, potentially lucrative long term deal- capable of hitting the proverbial homerun (grand slam actually).
Market cap is about $220M. Take from Spanish warship is estimated to be $500M. Other discoveries add even more potential booty. My question is why is market cap so low? Seems like if this is a shareholder friendly company, then potential value of a share of all these discoveries should be five or ten times current share price. Where am I wrong?
Excellent point. The $500million is tied up in court, and even if it is released, the net to the company after trying to market the goods will be much less, based on their track record. Also, the company has not demonstrated it can make a profit and reward shareholders, after all these years and discoveries. Most of us are betting that will happen but it is taking a long time, and other opportunities are presenting themselves in today's unusual market. It is neither all good nor bad news here, it is wait and see if you have the time. I do think more discoveries are going to be announced, so traders should continue to have opportunities as well.
First and foremost, you assume you will get share of any finds. Not true, shareholders usually only get a share of the profits in the form of dividends proportional to their investment (not $'s, but shares). The market cap is nothing more than what people think a company is worth, could, or will be worth- - - number of shares times share price.
I'm a newbie yesterday and the more i read the less i like.
Some of management quotes make me feel like my investment is more a contibution to a nonprofit then a for profit company. Don't get me wrong I contribute to PBS every year and I know it's a worthwhile contribution whereas this feels more like a scam nonprofit.