So, was quite surprised to see my buy order filled @ $0.005. Was disappointing to see the share price fall further, knowing i missed an opportunity.
However, for all those sitting on a current loss (like me of $30,000), it might be of value to take a level headed approach to the current situation.
Going through the threads today, it is quite clear that Tyler80 selling out his large share allocation has triggered a mass selling by a select few who seemed to be part of a closed group. However, it also seems as though the selling has been based on a combination of the following factors:
1) - Little share price movement during the roadshow.
2) - An expectation of an immediate share price increase after the American roadshow.
3) - A perception that management are now incompetent because JV did not immediately flow the second the American roadshow concluded.
4) - A perception (incorrectly) that LWP has cash to only last for another 12 months. This is wrong and as per the latest financial statement, LWP has cash enough for a few years to operate - assuming no sales
5) - A sheep mentality.
Now, as far as the market is aware, there have been no material changes to LWP the company, LWPs prospects or financials, or customer interest or disinterest.
All of the selling seems to be coming from a fear or frustration perspective.
I would also caution younger holders from reacting to the hysterical messages from some posters who are now claiming the sky is falling.
Here is what we know about LWP:
1) - Their tech is proven to work
2) - Their tech is proven to cost about 60% less than an equivalent product
3) - They have enough cash to fund operations for the next 2.5-3 years according to their latest financial statements.
4) - They looking to sell their technology in the Americas, South East Asia, Middle Eastern and European regions.
5) - They have the backing of influential and well connected parties.
As well as the above, we can look at the wider market to see some hints of LWP's future.
1) - Oil below $50 hurts everyone.
2) - Oil below $30 will put 70% of companies out of business
3) - Currently South American and Russian oil producers are bleeding badly, and need the price of oil to rise.
4) - American producers are badly hurt, however the American government has promised to prop up the industry whilst they compete with OPEC and Russia.
5) - The OPEC states (including Saudi Arabia) are currently losing big time on the current price of Oil. The price of fuel in SA has doubled over the last 4 months, their welfare programs are being cut heavily and taxes are being raised. From all reports they are on the brink of social unrest.
What we do know, is that Oil will not stay at these levels. Demand worldwide is rising still (albeit at a slower pace), and it is a finite product which is used in many everyday applications. LWP has a great product that will assist with extracting MORE oil, at a CHEAPER price. I operate a business and i can tell you that these key aspects are what will make a sale.
I also know that i would never partner with a company just because of a roadshow. Honestly the immaturity of some posters selling out because immediate gratification didn't occur is shocking.
Let me break it down for you.
LWP is a tech company, we can not actually produce any meaningful volume of our proppants. Therefore LWP needs to get someone else to license the tech, or go in with a JV. These conversations will take weeks / months. It isn't something that happens over night, and if they had any conversations at the roadshows, it would be Commercial In Confidence.
I agree that management need to produce more feedback to the market, perhaps to keep the younger buyers happy that things are actually happening - but honestly guys, the herd mentality, the immaturity of commentary and the overall lack of professionalism that has been shown here today is disappointment.
I'm in for the long term, because its a long term play.
Expand
