TSX:LSG.DB - Post by User
Comment by
ossyw11on May 17, 2013 6:44am
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Post# 21407832
RE: RE: RE: all i can say is wow
RE: RE: RE: all i can say is wow Based on my discussions with some of the LSG players, I believe that they HAVE turned this company around. They have deployed their capital (arguably poorly) but they now have the opportunity over the next two years to refine process and look to lower production cost. It is very sad that the funds, ETFs and similar have suffered such redemption velosity. LSG and its peers are at their lows. Although there could be a little downside risk in the short term; it just represents buying opportunities for bargain hunters.
For those who are contrarians and who like to buy things on sale, there will never be a entry point like this again. LSG will produce free cashflow by the end of the summer and there is little chance of dillution at these levels. Any financing would be a forward gold sale or debt, which would convert at substantially higher prices. There is a small risk of a share consolidation if markets do not improve; but that is not something that is comming now. There was a huge iceberg sell order in play for the last 2 months, which appears to be gone. And significant institutional order will cause a nice little pop - they just need a little positive momentum.
Tony will be meeting with institutions over the coming months with a turn around story in hand. With the sell side pressure off and only the most aggressive shorters looking for a $0.05 win, there is substantial upside.
Buy, sit and wait. JRMJ