Lignol Energy Corporation V.LEC

Market Cap

[jerrio78]

ARW is the largest biodiesel producer in Australia owning three plants with a total nameplate capacity of 150 million litres per annum. ARW's three plants were built at an aggregate cost of approximately A$150 million. ARW has made significant changes in recent years to become a cost effective producer of high quality biodiesel to address growing biofuel demand in the Australian market. More information on ARW can be found at their website; www.arfuels.com.au

So why do they only have a $18M Market Cap? The stock is trading under a penny with a 52 week high of 2 cents and over 2 billion shares outstanding. Now ARW wants to raise $4M, OMG, how many shares will that be? 1/4 of the fully diluted? The numbers must have looked good on paper but when you look at ARW's revenue for the quarter I am sctratching my head as to why LEC keeps funnelling money their way. No doubt they may take a bite out of the $4M raise but when will this bear fruit? The Auzzie Gov't might have to step in at some point and help out as part of a green initiative I think. Otherwise these guys could drown in a moutain of shares and look like a US OTC play soon. Just my opinion of course but scratching the surface on this story created more questions not answers.

[b4545]

gun boy, go away. no one cares what a gun promoting fool has to spue. Guns kill, so guite promoting assault weapons. 

[M101]

I don't see the ARW strategy either so I asked David Turner about it last week, but no reply yet.  I don't see where upgrading fats and oils has much to do with the producton of ethanol and lignin but they're not buying anything near control so I'm open to the idea that it's more about the distribution infrastructure than the production technology, and not being an

[M101]

Turner never replied but this latest move in to ARW seems to answer the question, Difference Capital is pulling the strings now.  Is this good or bad for us?  On one hand there's more capital available and maybe some sort of synergy within the broad sector, but on the other hand LEC now has a creditor but does not have revenues sufficient to service the debt.  Thoughts?

[jerrio78]

I think they started going down a bad road and now they don't know how to turn a new direction. I think we saw the best case and now the worst case is playing out in the market. If this sells down to 3-5 cents again then I wonder who will write the cheques then? ARW looks like a money pit to me, and the float is laughable. I might buy a few million with my coffee money and sit on it for fun.