Exited MultiClient Geophysical (MCG)

On the one year follow up of MCG I decided to exit the position. At the time of purchase MCG had a large cash position and was trading at around net-cash. During the last quarter the company invested much of the cash in data libraries, which I don’t have any strong opinions on. What is clear though is that the stock no longer has any good margin of safety and is no longer  a net-net.

I exited at about the same price I entered. A slight profit (+6%) after FX and commission.



Entered MultiClient Geophysical (MCG)

MultiClient Geophysical is a small cap Norwegian company that holds a library of survey data. The data is used for resource exploration. With the downturn in oil price the business seems frozen.

On the plus side the company has a strong balance sheet and low burn rate. The company is trading close to net-cash. Entered at P/NCAV 0.57.