GREY:LGLTF - Post by User
Comment by
britishcinnamonon Jun 11, 2015 8:26am
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Post# 23819236
RE:$80 Million in Annual Revenue
RE:$80 Million in Annual RevenueThe revenue is growing year-over-year every year. That's the only good news right now.
The biggest concern for shareholders and future investors is mismanagement in the past 12 months that can lead to some difficulties down the road. The biggest fear amongst investors is the enormous deficit that LOY ran in Q4-2014 and bleeding into Q1-2015. The company is at its weakest right now, like a sick patient. If it can pull through the tough times and start improving its earnings and cashflow, then it can eventually become viable again.
One of the most important things to consider is that it has breached the conditions of its credit facility, which casts doubt in the eyes of many regarding whether or not the company is solvent. If LOY can pull through the next 3 months (at least), then it may rebound. People have every right to panic. They invested money into this company believing in its ability to increase revenue while growing its earnings and the business fundamentals. Because this has not been demonstrated, a massive selling has occurred in the past 2 days.
Also, how will they ever be financed again by any of the institutions that bought shares at 40 cents just a few months ago? And the private placement at 70 cents? What about Kim Okran at 52 cents? These companies have quite simply thrown money away.
Those are the concerns that the new CEO will need to address and put right, no small feat.