TSX:LSG.DB - Post by User
Comment by
Golfcar72on Oct 07, 2010 6:17pm
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Post# 17542706
RE: RE: RE: Take-Out Fever....
RE: RE: RE: Take-Out Fever....That's a very valid point RedRaider16.
The market is about results and if LSG cannot deliver on estimates and projections - the key to a forward looking environment - people will not be buying the stock. Right now gold is at an all-time high (unadjusted for inflation of course) and when the price of a commodity is spiking, you want to be in the process of selling, not exploring. LSG is not delivering on the anticipation of production created last fall (2009) when this stock was higher and in the $4+ range.
People were buying then because:
- They (the investor) forecast gold going higher
- Anticipated LSG was on the verge of production, corresponding with the surge in the price of gold
This would have created an environment where LSG was in full production at the same time as gold being at all time highs. Clearly the sentiment has shifted in the face of lagging production results. The investing public does not feel that LSG will be producing the volume of gold promised in a marketplace where gold prices yield an exceptional premium. Historically, gold does go up but the spikes being experienced recently could be the precursor to a fall in price.
The long and the short - an inability to produce quality and volume now is hurting LSG, regardless of the price of gold. We need the mills full and operating non-stop, contributing to the bottom line.
Just my opinion/observations, but hope they get going soon!
Golfcar72