RE: RE: RE: RE: RE: Current status of LSG, as I se BB -
I quite agree with you that LSG is now a show me stock. The question for the people on this board is do they buy/keep their shares or do they not buy or sell them. New retail investors are many miles and months behind institutions in terms of awareness and information. So the question is do you invest ahead of the curve or behind it (essentially making you a second idiot).
Having been a CEO and a Director of more than one public company, the way the game works is that Mark and Tony are now in a quite period until the AGM. Having said that, analysts and instutitions interested in gold mining juniors (and there are still many that are) are knocking on LSG's door trying to get guidance on production numbers, real costs, exploration lilestones, etc.. That guidance - whether it be formal or "wink-and-nod" guldance - is about 2 weeks away. The meetings are being scheduled now and plane tickets are being booked.
What we all know is that there is limited downside given the assets on LSG's balance sheet. In a worst case scenario, those assets might be better managed under someone elses roof - and there is substantial merit to that scenario given how LSG has used its capital over the last 24 months and given the fact that no single executive or board member is really vested (in terms of reported shareholdings) in the success of LSG's share price. Those issues of course will be talking points at the AGM as shareholders and in particular instutitions bet on horses who interest's are aligned with their's. They want to see executive/boards who have their own skin in the game and that is NOT (sadly) the case with this group. However, as I have posted before there are deep pockets sniffing and there is no single control position in this stock - which means that the board and management will not be able to block a tender offer - such would truly be up to us - which is a good thing. We'll see if something is out there.
The other option of course is that we get to 4.2-4.6 OT. In that case LSG will blow 2013/21014 guidance away. We are going to know in short order where we stand there - but it might very well be that the smart money (the money that can be deployed ahead of the curve) is getting in and those who have been margined out are being forced to sell. I have recently witnessed some of the instutitional meltdown causing forced sales of TSXV gold juniors - and its isn't pretty out there. Some of these guys who financed juniors 2 years ago around PDAC are being liquidated - their positions simply being blown out at any bid - TO WIT: LSG's shareprice today.
There are Canadian institutions that are vested in LSG and others that are getting in now because their mandate allows speculative buys. The 12 million share block is evidence of this - are is more wareholsing in process so we should expect other big crosses.
What is more interesting (to me) is the 30-50 buy side funds in New York and Boston, who's mandate is also to buy TSXV venture resource stocks in the open market. Once these guys are engaged again, and we will know by the trading volume, the spring will be on its way up. They often step in simply to trap the shorts - and they are sniffing aw well.
So I agree that LSG is a show me stock; however, by the time it show's the street and our lame analysts at BMO and TD, etc. figure it out and raise their guidance - the easy money will have been made.
Its just the way it works out there. Once these market fundamentals are engaged again we will see better days. That time is coming. JRMJ