TSX:LSG.DB - Post by User
Comment by
goldhappyon Jul 08, 2014 12:53pm
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Post# 22725553
RE:interesting action
RE:interesting actionI tend to side with under value. This company can fund exporation with cash earned from production. I have held many exploration companies that go above a dollar then crash and burn. LSG management has a proven track record they can explore , develop mines and mills and turn a tidy profit. They can aquire financing in a bear market for gold prices. They can pay back debt. Not bad in my opinion. Add to that the potential for longevity as exploration continues and if the price of gold can hold or climb. We are at the start of what people see as the start of gold season. Just a few thoughts. What is next to see is a return for the shareholders. It may be early but the big winners are those that get in on the ground floor. It is safe in my calculation and we are still on the ground floor. This management team are very active and very savy...and have an excellent trained work force. There is still a lot of work to be done. It may not be something a take over company would see as value. LSG is growing and carries debt. The big profit is not there in the short run. I'm not so sure people want that kind of risk. I do have interest in the potential finds from exploration. This company was set up as an exploration company. Now they can fund exploration with cash. Cash is boss in this business. A take over company would need to pay a premium. I'm not so sure the shareholders would be satisfied with a token premium. Just my take and good speculating to all.