6168mark, you nailed it. But some here believe - because they...

6168mark,

you nailed it.

But some here believe - because they assume the 1.5b escrowed shares holders would act the way they would act - that they would place 1.5b shares for 2c straight on the market on the 5th of January. That way the sp is back down despite the continuing increase in revenue while the cost stay at a constant rate. LPE is making profits since the first day but haven't reported a cash flow positive quarter as they constantly reinvested profits in growing the business. Mixed with some rumours about a CR and you get what we've got, a stagnant low sp.

The management owns about 2/3 of the company and anyone who wants a big chunk just need to offer them a good price. We may see those actions once cash flow positive is confirmed, maybe in January.

IMO LPE has been established to be taken over in 5-10 years time and that way I don't see any problems when management is not concerned about the sp until they want to sell the company. This is known to holders and traders, everyone who needs a daily huge range of sp action should turn to the Lithium stocks. The sp will go sideways until one of the big guys either got the green light to buy LPE or becomes worried that someone else may start buying before them. I am still in contact with SunSuper, they are is still in the observing mode waiting for their criteria to be met.

The human mind wants to see a steady rise in the sp - even a tiniest bit would do. Reaching the same high in just one day after 5 years time is too much for many and they become impatient and lash out at management. I see the benefits of the current actions as buying at 2c over 5 years and selling at 10c is much better than buying average 5c over the same period and selling at the same price. But explaining that to Rajen and Co. seems to be an impossible task.

Management made a big mistake in January / February by getting ahead of themselves and trying to speed up converting by raising money just to learn that money can't buy qualified electricians. The debt facilities turned out be unrealistic / unfavourable and management is now doing exactly what's affordable and sensible: growing within its means. VMT, AHZ went through the same stages in different industries and while AHZ may get back on track VMT is almost dead. LPE has avoided to get in trouble by doing / accepting crazy deals, doing too many non-profitable things at the same time ( AHZ ) or buying other comps which later turned out be crap ( VMT ).

At 6 GWh per month conversion rate I think LPE is cruising well and financially sound in the future. Expanding into NSW / VIC on a big scale is a big risk if they have to accept unfavourable deals and the risk of not getting the staff needed.

This is just my opinion based on 2 years holding and communicating with staff and management. I am not a guru when it comes to investing but as long as the revenue is greater than the expenses all will turn out well.

GLTA