AKCCF - Aker Carbon Capture: A Baseline 25% Cash Value Upside
2025-01-22 09:39:19 ET
Summary
- Aker Carbon Capture ASA should soon announce a new business plan, potentially closing the current stock price discount to cash value of 20%.
- The market's conservative valuation seems to assume liquidation, but the company has made their mandate more flexible to allow for new investments in the last AGM.
- There is more upside in additional performance based payouts, and associated with SLB and ACCs respective call and put options for the remaining 20% stake owned by ACC.
- A new strategy may be a catalyst, or perhaps an eventual announcement of a new investment after that. The margin of safety is great but there is a reinvestment risk here.
- Of particular concern is that the mandate continues to focus on green investments, whose appeal has diminished in financial markets.
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Aker Carbon Capture: A Baseline 25% Cash Value Upside