RE:It's time...Excellent balanced post. IMO there are two main risks for GLK :
1- Are they gonna be able to ramp up sales and find more clients with repeated long term orders ? selling hundreds of tonnes of micronized graphite to 2 or 3 customers is one thing, building a business with thousands of tonnes of sales per year to a set of diversified and long term clients is the biggest challenge and the goal they are aspiring to achieve.
2- Are they gonna be able to make decent profits for a sustainable profitable business ? again, making some dollars per tonne is one thing, but making enough profits (which depends on margins) after General and Administrative costs and taxes have been paid is the biggest challenge.
These risks are simply the same for any new business but wiih variable levels of challenges (some businesses are tougher than others due to difficult entry to market, thats the case of monopolistic/oligopolistic markets). However, the rewards in case of success differs greatly from a business to another. IMO the rewards in case of GLK success (value added graphite) are huge, and the risk/reward opportunity for investors is absolutely worth it. GLK could be simply what the doctor ordrered : a processing graphite company in the right time, right place.
Floridas2000 wrote: ... to accumulate. I have been reading posts lately and focusing on the legitimate ones that have concerns ( I ignored the bashers that bring up old news we know is false).
1. Matheson isn't up and in production yet.
I agree that is a concern but not a big one because they're still able to deliver to clients. It's like a pilot plant that can't produce maximum capacity. So commissioning Matheson without having enough clients to use it at capacity is a bigger concern and they're building up their client base now.
2. Financing
They do have a credit limit they can pull from. But for now they are good and their burn rate is slowing. They will need more money going forward but they know it will be approved and where they will get it from which is a big advantage.
3. Ontario Graphite
We don't know what will happen but I believe this. If GLK loses it will delay their progress. If OG loses they're done. I never understood OG's priorities, they are a graphite company and instead of trying to sue they should be focus on bringing their mine to production and dealing with their thefts of property and environmental issues.
4. Their story
Not enough people know who GLK is. Whenever you see an article about graphite and graphite companies they'll talk about Alabama, Elcora, Mason, etc. No talk about GLK or DNI for that matter. This is being worked on and investors are going to know about them.
5. Rich Lane
Who is this guy? Well he's a well know entrpreneur who knows how to run a smart up company. He also has ties to the investing community and can open doors for GLK that were previously closed. For a small company it's important to not only make money but differentiate themselves from others in the space.
So 1 will be resolved this year. 2 is not a problem right now. 3 might be a problem but unlikely. 4 is being worked on. 5 is not an issue. Add to that they've expanded to processing synthetic graphite used in batteries, they've a growing client base while developing relationships, they have a solid team, they have a footprint in Massachusetts, they're starting to get recognized in the graphite community, etc. This is foundation work for lift off - that's why I think it's time to accumulate before it does. Elcora is close but they're going after a different market to GLK so they can easily co-exist. GLK is a leader in a suppressed graphite market.