ok guys have a look at ASX:LNY
the situation with these guys is they are sitting on at least 60000 ounces of gold (thats refined, not the ore) but are waiting for a mining license from the gov, which is supposedly approved and will arrive shortly. with aus gold prices rising and oil costs (expenditures) falling, the site stands to make an awful lot of money. however, the stock price is currently 0.3c, thats right a third of a cent. the question is, why? why is such a massive potential such a low value? does someone know something i dont? is this a massive opportunity or a big risk? am i dumb?
no clue but I think its a possible pump and dump...
at that current pricing, buying like $25 worth and sit on it and wait I guess, maybe you'll make a few hundred, wouldn't risk more than that though for
The key is the licence hasn't been granted yet. God knows why it hasn't been granted.
I'd be watching only until the licence has been granted - cash burn until then. I had a bad experience with another stock that was waiting on a licence that didn't get granted for close to two years, and in the process, burned through way too much cash and devalued the shares by 90%. You have to question why its not a takeover target at these prices if the licence is a sure and imminent thing
yeah these guys have been waiting for 18 months now i think for license, i agree i doubt its a pump and dump but it just so odd, like you say you would at least expect someone like bhp to grab them. too sus for a go you think?
To be honest, my appetite for that sort of risk is significantly diminished due to being involved in a speccy company doing rare earth refining as I identified above. You have to remember, you're dealing with a relatively small, junior miner. More of them tend to go bust than turn into anything, and they don't you any divvies on the way through. The capital gain is there if all goes well - but all has to go well.
Too risky for my views, but I might end up looking a fool if the licence gets issued tomorrow and it goes on a run. There are a fuckton of shares on issue though too, and I think I read that the company is looking at issuing more (don't rely on that though, take a look for yourself). You have to remember that if there is a shit ton of these things, that's a lot to churn through to push the SP up.
In saying all that, if you have the appetite for the risk and you're confident in the licence being issued, then it may be a smart play.
PS - Loving that there's an upswing in ASX discussions - sounds good to me.
PPS - If you want to look at the turd that has made me somewhat conservative, go read about LYC. Still holding as a permanent reminder that I'm a dumb fuck.
It's so bullshit.
I used to use it but they would make any excuse for why the stock should be good.
There was a broken part in this companies manufacturing process causing long delays and some guy literally suggested that the executives did it so the directors could buy more shares at a cheaper price
Oil goes down its good for the company, oil goes up its good for the company, they would blatantly lie and skew facts to make it seem like the company is good.
Don't bother going in unless you actually do your research and realise that most of the guys there are jews
I do log on and look at it a reasonable amount. You have to remember that most people there have a vested interest. It interests me for the short term tips (there's a lot of people with a good nose) but you always have to check and do your own research to consider whether the risk is good.
It is where I first got into that shit stock though. In all, I'd be more of a lurker than a contributor. There's a lot of shitfighting over there.
There are so many of these fucking "can't miss" sub-penny mining stocks out there. All you've got to evaluate them is their own hype. You'd have a better chance taking that money to Vegas and playing roulette - at least you'd get any money you won faster than "whenever the government gets around to approving this dubious license" which could be never.
In conclusion, don't waste your time evaluating or investing in these things, it's pure speculation.
>why is such a massive potential such a low value?
because it is a virtual, nothing you know or any others is a valid information to build an investment on. however if you are confident in to information they are giving put a 100$ into it and see where it will take you.
A few big indicators for me if it was a solid stock would be:
Executives would be buying stock for them selves - you see this with the big 4 banks in Aus as well as other major and proven companies. From my 10 seconds of looking all I can see is stock issued to directors from the company but not purchased with their own coin.
2) EPS is -0.002, they are currently operating at a loss and in the last quarter took out a $2m dollar loan with a negative annual cash flow in the low $100k's.
From my quick look doesn't look amazing, and like a few others have said unless the licence comes through it looks like poo.
I am a bit of a pessimist when it comes to speculation in mining stocks though so it could just be the way I look at these things. I might see if there is anyone else chatting about it on hotcopper though.