Dear LOY, Avoid Trouble, and Grow.When Q4E and Q1E came out, it looked like trouble, both financially and legally. People on the bullboard were claiming lawsuits and insolvency. The release of the financial statements brought about fragility and a big scare, which was demonstrated in the form of the SP crash.
With each passing day, the chance of lawsuit diminishes because the company chose to communicate its near-term and long-term plans to return to positive cashflow and to pay its creditors. Granted, the board made huge mistakes in not communicating these financial troubles with shareholders and managed to screw up $63M of revenue in a manageable industry with limited competition. Nevertheless, LOY has been communicating positively with BMO since the audit in May. The new board has been communicating positively with its lenders just last week.
It seems that these parties are angry, especially at Ryu, which is why he was forced to resign on a Saturday, the weekend! My speculation is that the resignation of Ryu was a necessary arrangement to prevent hostile action by the major shareholders, underwriters, and banks.
Indeed, LOY is not out of the danger zone yet. It has to gain investors' trust again, something hard earned and easily lost. However, as a long, I choose to be optimistic. I can say the same about many other hopefuls. Yes, we are angry at the company's mistakes, but we are not just going to cry about what we should have done (looking back). There is only now and forward. As a shareholder pre-crash, I have been averaging down aggressively. Maybe a gamble, but it's this or sell; I chose the scarier path. Who knows? Maybe it will all blow up on me, or maybe I will see better days again.