Good chatter on here and everyone seems to have pieced together what is going on in a similar way. LOM is being traded, manipulated, held down, whatever you want to call it - it's blatantly obvious. The reason is so more can be bought at a cheaper price. We need to see broker data.
It does surprise me that some larger players haven't stepped up and supported the SP by now - after all its a competitive market, but with the risk off approach and market sentiment over the last month being very low it has allowed this to drifted lower. The thinking of a fund manager is 'why buy at 50c if I can buy at 40c?'.
An annualised earnings is a little hard to predict at the current time but looking at the last 3 - 4 months one can get a pretty good idea - also remember this is increasing due to the XRF machine in due course.
I get a PE ratio of between 3 - 4, based on annualised earnings and a fully diluted MC. That wont last long because people like money too much.
The risk being touted of the kimberlite licence does need to come because it is the primary risk / fear motivator in investors minds. It's being used to keep the SP suppressed and its working. For me this is not a risk to be considered and certainly not one the market should be waiting for.
So we have solid revenues, no matter how you calculate it - I put out PE at 3 - 4, the kimberlite licence is a minor risk and has been referred to by the company as just a formality (check the wording), and the upside of successfully identifying the source is not even factored into the SP even though the probability of success is high. It's just a waiting game.
LOM Price at posting:
41.5¢ Sentiment: Buy Disclosure: Held
