I sold my 300K shares on Jan 21, needless to say for a substantial loss.
The immediate catalyst for this was that a couple of you guys had been trying to contact management, and reported (I think Jan 20) 'still no response'. This rang alarm bells. Why not communicate transparently with shareholders, who appoint and pay management. Even if matters are 'in confidence', then a prompt return call or email to say just that is well within the purview of a $300K p.a. director. It looks like laziness at best and dissembling at worst. (I read recently about a director of a successful project in the Congo who would fly there at any hint of trouble, and was still available to shareholders by mobile while he was there).
Immediately I'd sold, there came that 'pre-announcement of an announcement', and when it came, there indeed was that nice-looking gasification progress graph. It looked as though I'd worried them.
There were many other niggling doubts before my sale, and still more after. Does the major shareholder have the best interests of LCK at heart? Or might they be happy to see the company go under and pick up the assets cheap? If 2% DS could cause so much damage (or was it just him) then what could a bigger parcel do? They didn't take up shares at 16c because allegedly were not allowed to take the money out of China - but since when has China prevented huge Chinese corporations from investing billions overseas? - then LCK said they should meanwhile pay 24c, then heard nothing more. Till now when they are picking over the bones at 12c and less. Meanwhile ASX hints at insolvency. In one sense fertiliser might be more profitable than straight gas, but isn't it a far more expensive option? 2bn? 4bn? for a plant? That ad offering 50PJ pa 'excess' gas smacks of desperation. If you've got a fertiliser plant adding value to your gas then why would you have any excess? Looks liken major s/h dictated the fertiliser option, which would give them virtual total control, and LCK directors desperately wriggling to find an alternative source of funds.
Much as I was hoping to see LCK successful and still do, I can't put my SMSF at the further risk all these doubts imply to me.
GLTA
LCK Price at posting:
11.0¢ Sentiment: None Disclosure: Not Held
