Ezion recently announced another collaboration with another listed company, Ausgroup.
I’m not so sure if this is a good sign, even if several brokers have already reported that there is good synergy in the deal.
What seems to be good about the deal is that there seems to be strong mutual benefits between both companies since Ausgroup fabricates modules and structues for the oil and gas and resources sector, while Ezion provides offshore logistic support services for oil and gas projects in Australia.
Problem that I find unsettling is that after its take over of YHM (now Charisma Energy), it has tried to collaborate with Ocean Sky, which failed quite miserably, followed by another strategic stake in JK Tech Holdings, and now, Ausgroup. Question is why is there a need to take on so many strategic stakes so rapidly, before the various collaborations have played out?
With last October’s spectacular Blumont, Asiasons, LionGold saga and the intricate web that is slowly revealing itself, I do have my worries. Moreover, online chatter also describes this ‘strategic stake spree’ as similar to that of Raffles Education, another listed company, which made use of its ‘track record’ and ‘market darling’ status to get into many ‘strategic’ investments and collaborations, which ultimately proved to be its undoing after it found itself making bad investments.
Hopefully I am wrong.
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