Hey Frikkie,
As previously advised my stop loss orders were triggered and I exited at about .05c above my entry. I was very fond of LRS and needed to set stop loss orders in advance once the price moved into profit mode as I would have lacked the discipline to sell when the price started to decay the way it did. This is a non-negotiable habit I have with share investing. I concede I might miss out on a bigger profit long term (sometimes) but at least I almost always preserve my capital and take some profits. As the price kept increasing so did my stop loss trigger....it had absolutely nothing to do with being in LRS for for a quick instant gratification style profit...its just capital preservation pure and simple.
I don't generally criticise stocks I am out of in fairness to current holders and so far have refrained but because you have asked I will give my take on LRS as I see it....
When I first bought in there were issues with management breaking their own timeline but that didn't bother me as it was the overall potential of what was in the ground that I was interested in. All along I said that if the purity and quantity were there the share price would take off. The area seemed right, we had funds for initial drilling and there were other ventures brewing. On one view of it 1.5-2c was cheap. It was a big dice I was happy to roll...
The skinny cross-sections clearly started the rot. Compounding this was how the company handled (didn't) itself when confronted with this drama. When the proverbial promised land is in front of a company, and sentiment is high, and potential is about to be realised you never get a good feel for the true calibre of what decisions are likely to be made. You get a real good insight into a company's governance when roadblocks confront them.
For me I find it borderline incomprehensible that anyone from the management would consider it appropriate to offload even a small parcel of shares when the price was under negative pressure- effectively competing with investors for a dwindling pool of money. It wasnt the impact on the share price that was the issue but the perception it created with investors that management didn't back their companies prospects. The timing was in my opinion insensitive and had a yuk feeling about it. Some time ago in response to a comment by Elee i said that if people don't like the captain they should disembark from the ship. The more I reflect on what has happened the harder I find it to want to jump aboard again...
My other issues are the increased size of the registry and the lack of decent funds to exhaust the question of whether the quantity really is there. I worry this might not be determined for a long time or at all...but stranger things have happened and the next round of drilling might momentously save the day. I think they need to get the consolidation over and done with. I cannot quite get a grip on what the insto's are up to. It is corporately discourteous to leave these things hanging in my opinion.
In my profession transparency is a given. I do therefore struggle to understand why LRS cannot provide regular succinct accurate updates on what is happening with ventures like the copper project or their ultimate intentions with the mineral sands 'project'. If they are presently undecided they should at least say so- no shame in that. Someone from LRS told me on the phone that they monitor this forum. If true, having regard to the numerous people wondering out aloud about these ventures I can't fathom the relative silence from the company on these important issues.
The company still has potential no doubt, possibly more so in copper and cobalt (lithium technology relies heavily on cobalt but cobalt is more rare and the market held more tightly). Management might turn the ship around quicker than expected and the lithium quantity proved...I personally just need to see some fundamental changes before deciding to come in again.
Before I get accused of down- ramping I can say hand on heart I am not looking to buy in now or at a lower price. My buy trigger is strong positive sentiment and a climbing share price with solid buy depth. I would get more interested again at around the 1c mark with consistently strong volume.
I wish all holders the best. Hassle management for progress on the copper and I assume the cobalt hype when/if it comes will help no end. Fingers crossed for the lithium drilling- I would love to see you all find a chunky fat reef...
Best
LRS Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
(20min delay)