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Heiko reduces the PT by half from US$9 to US$4.60. Why such a huge cut while still maintaining a Buy rating? I may be wrong but in my humble opinion Heiko sees good opportunities for Largo to make money thus the Buy rating but he has serious concerns about management not being able to deliver the goods thus the reduction of the PT by half.
The lack of performance by the top management team since the company’s commercial independence is eroding the public trust. The BoD must focus on earning the trust back from the market. A very difficult task considering the anti-transparency corporate vision and the habit of overpromising and under delivering by management. Companies having a market capitalization between US$300M and $2B are considered as “small caps”. With a market capitalization of ~US$104M, Largo is not even a “small cap” but is considered as a “micro cap” company. Largo is not just any micro cap company: It has the rare distinction of being a micro cap that pays 6-figure compensation to its top executives. If the BoD is really serious about recovering the public trust, the first step is to hire a dynamic CEO with a good reputation and a strong leadership to come in, hold people accountable for their lack of performance and clean the house. It has already been more than a year now that we have an interim in-house CEO who is around 75 years old. Why is it so hard for the BoD to find a permanent CEO?
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