RE:Some perspective from a first time posterA good example of what happens to investors who take projections, estimates, so-called "analysis" at face value:
PvtInv01 wrote:
- LGO's enterprise value is roughly $600MM
...and less than $400M now.
PvtInv01 wrote:
- LGO should generate over $70MM in EBITDA this year and over $100MM in 2022.
It's probably going to be less than half of this.
PvtInv01 wrote:
- The technical report does not contemplate value associated with the energy storage side of the business (it was not in the scope of the report). The company has indicated that the value of selling in the energy storage market greatly exceeds the value of selling to steel producers.
Battery sales during the last 12 months: None.
The only battery ever sold can't be delivered on time.
PvtInv01 wrote:
- Ian Robertson co-founded Algonguin Power & Utilities Corp and grew it to over $10B in assets. He should be able to handle the establishment and growth of Largo Clean Energy just fine.
Mr. Robertson is long gone, a distant memory. His successor is gone, too.
PvtInv01 wrote:
- Analysts targets are $21-24 (CAD). At the moment, none of the analysts have updated their models to incorporate cash flows from titanium (which will add significant value).
All analyst estimates turned out to be terribly wrong.
PvtInv01 wrote:
All of these factors suggest this stock is significantly undervalued.
LGO stock closed C$13.29 on ethe day this post was made. It's C$6.87 now, down -48% from where he said it was "significantly undervalued".
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Bottom line: Expectations expressed here are constantly way too. The company continuously misses its own forecasts and market expectations as well. Hence the share price performance that we have to endure.