TSX:LSG.DB - Post by User
Post by
yoda2on Aug 18, 2012 10:50am
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Post# 20232743
A QUESTION OF iNTEGRITY
A QUESTION OF iNTEGRITY A July 4 2012 marketing presentation by Tony Makuch states:
"Funded to Reach Positive Free Cash Flow". The slide (#32) states sources of cash for 2012 will total $261.7Million with uses of cash totalling $182.5 million leaving a funding cushion of about $80 million and certainly creating the impression that no further financings would be necessary moving forward through the rest of 2012
https://www.lsgold.com/Theme/LakeShore/files/doc_presentations/marketingjuly2012july412.pdf
And then on August 16 LSG announces a financing with a $90 million convertible debenture that will dilute the current shareholders equity by 15%.
Such a change in a month seems to indicate a big credibility problem. How does one explain such a huge change in the guidance provided by the CEO? In the old days this might have been called lying? Today, one wonders and it is easy to understand why many shareholders and possible much of the investment community at large have lost complete confidence in LSG's CEO.
Is it yet time for change of the CEO?