ABXXF - Abaxx Technologies: Asymmetric Risk-Reward Profile With Near-Term Positive Catalysts

• Abaxx Technologies is weeks away from receiving regulatory approval from the Monetary Authority of Singapore "MAS" for their clearinghouse and exchange licenses respectively - their exchange will launch in September.
• Their cornerstone exchange product will be an LNG contract that aims to be a benchmark contract akin to WTI or Henry Hub in North America, or Brent Crude in Europe.
• Surprisingly, no benchmark contract for LNG exists, and market players use a variety of O&G contracts to hedge their LNG risk. Abaxx aims to fill that market need.
• The TAM for a Singapore-based LNG contract is assumed to be $500M USD, and I believe that Abaxx could take 20%-50% of the TAM within one to two years.
• This article illustrates the asymmetrical risk/reward profile for Abaxx. A sum-of-the-parts analysis produces a valuation of $4.34; one and two year price targets are set at $15 and $38 respectively.

For further details see: