1. The performance shares were part of the original reverses take over deal. It was always clearly stated in November 2015. LPE was a company founded by a few guys who used the previous, almost dead resource explorer company, as a back door to get listed. They owned 100 % of LPE before and own now about 2/3. Like Zuckerberg, who owned Facebook 100 % ? before the listing and now just the biggest part but not all of listed Facebook.
2. Because the directors own that much, they run LPE the way they like it to run. They always said their goal is to reach 450 GWh, then deciding what happens next. Ethically, yes of course they could and should hit the PR drums but let's face it, in the end a company value should be determined by the profits they made and will make. But how are companies valued these days ? Let's look just at Lithium start ups and the Infant Milk Formula companies. When they start, they get valued at what may happen in the future - huge sp increase just based on hope. But once starting generating revenue, suddenly the valuation is based on real figures and PE - ratios and the sp goes down to reflect the real income.
Now how to value LPE. Expected income based on 138 GWh is about 26m. If they just maintain the customer base and stop converting they generate about 10m in profits annually for the next 7 years. I get the numbers from the 4C, about 2.5m converting costs per quarter saved means 10m saved. It is the unique business model that guarantees a recurring revenue due to the one-off converting investment, the 5-10 years contract time and the fact that the contracted unit occupants will use power.
It is different to a product selling / service providing company that stops making money as soon as they stop producing / service providing. LPE's product producing is the converting part. Just keeping the service part alive - billing - should provide LPE now with 6-10m annual profits assuming there are costs I haven't priced in.
Even if it was just 5m, at PE 15 LPE should be value at least at 75m, about 3c. At 10m about 6c.
That's the way LPE works. If the market sees it differently then the directors can't do much about it. And that's why we have to wait for industry players / analysts to come out of the wood work to either take over LPE or to recommend to buy LPE once they think the figures justify it.
3. I have never been successful chasing rising stocks, as soon as I bought shares I reversed the direction and ended up with huge losses. The only way I made and make money is holding a fundamentally sound stock until the market pushes it up. And that took and still takes years. If anyone here wants to make a quick buck - please sell and join the stocks that get shot up every day 50 - 1000% percent. Those are all listed here on HC on the left side next to our posts. Sell LPE and buy those - if that makes you happier, then do it.
Of course I want to get rich quick too but for me there is no such thing or luck. If you see me holding a stock I can guarantee you a long, painful wait - but a happy ending. My other stock, IMU, is something similar - a very long journey ahead, bumpy, but with a bit of luck in the coming years a huge winner.
4. Yes, I am a LPE cheer leader and hope that I am right LT. If not then I fell for managements lies and deceiving tactics and you can call me what ever you want. But so far let's face it, they are achieving ahead of schedule and just because the traders haven't discovered / understood LPE doesn't mean LPE is crap.
If all goes to plan we can calculate revenue based on a 150 GWh from January on. When the sp hit 5c we had about 50 GWh. So guys tell me, who got it wrong and when ? Too high at 50 or now too low at 150 ? You'll be the judge !!
GLTA
LPE Price at posting:
2.1¢ Sentiment: Buy Disclosure: Held
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