Originally posted by justdoit7
para 1 - can only hope - investors bought big & trade, i do wish they recover their money though looking at LPI timeline chances are Nil (holders shld ask the board why the expiry was set for mid-19... didn't the board know dev timeline)
para 2 - Disagree - m-cap matters to shareholders and shows how markets view a company. long term & option holders don't see current SP as a blessing
para 3 - Agree - There is potential but only time will tell how its manged. Although the way market has reacted to various news releases from LPI i have come to believe that Litio resolution is paramount for the future of the company.. no offtake and/or funding will come before litio resolution. Every shareholder should hope Litio is resolved by December in line with DFS.
para 4 - Agree - Chilean directors are working on it and are competent enough..
para 5 - Disagree but he's out of the company so lets focus on the future
In terms of your para 2 response the share market presents many, many value anomalies and that in itself presents enormous opportunity for investors and traders. What matters to shareholders is the inherent value of a company and whether it has the potential to optimise its market cap. AND that is one of the reasons why I and many, many others have invested in LPI.
I will refer to the example I gave yesterday. If what MSB CEO Cristobal Garcia-Huidobro says is accurate and LPI/MSB can triple the size of the Maricunga resource, then we will have a resource at Maricunga with an IN GROUND value of US$90+ billion dollars, and benchmarking POSCO's recent Sal de Vida resource purchase, a Maricunga resource with a market value of US$944.2 million - and I have decreased the grade from 1165mg/l Li to 1000mg/l Li.
Now, looking at the company with the $250 million market cap I referred to in my post yesterday, its lithium resource has a market value of US $13.2 million and is an example of one the market's anomalies I mentioned above. So using your logic, investors would be happier invested in a company with a $250 million market cap that does not match the underlying economic fundamentals, as opposed to an significantly undervalued company with very strong underlying economic fundamentals. Somehow I dont think so. Hype and hope an only take a company so far. Substance generally wins in the end.
