Lamboo shareholders are a little smitten with is retraction announcement because the directors view and some heayweight consultants have been deemed to have taken some liberties with the applications to the JORC code to its so called scoping study as released to the ASX.
This is despite the fact that has a merger deal with a Chinese reputable processor. The value heavily discounted is $160+ mill . LMB is contracted to take this over at 85.5c. On todays prices this shows it is buying it at half price, simply does not make sense.
It appears to be forgotten that after the merger (subject to LMB shareholder approval) the company will be producing high value spherical graphite and some graphene products.China wants as much of spherical G that it can get its hands on., they always look to the long term and want a guaranteed supply of the right style of Graphite ,LMB’d has been approved.
On share prices LMB is now heavily oversold and when the notice paper and associated documents/explanation showing the quality of assets and the high level customer base, attitudes should change.
Todays prices represent a bargin for the bigger picture for years to come.
Traders could be caught badly here and will need to chase prices once stoploss clears
HXG Price at posting:
41.5¢ Sentiment: None Disclosure: Not Held
