how lynas confuse retail investors

With the Lynas share price down at 16c from north of $2 a few years ago some people might find it difficult to understand how we got here. However the recent update from the company provides numerous examples of how Lynas confuses retail investors with their careful crafted statements. The following is an excellent example of this.

Statement from the recent update:

"Based on current customer agreements and negotiations, Lynas currently expects to sell its annual Phase 1 production"

Now on face value many investors would think the sales for Lynas are in the bank. However IMO a detailed analysis of the wording of the statement can suggest otherwise:

Two references to "current" gives management the ability to back away from their statements, as they can simple defer to the fact that the "current" situation is no longer. The reference to "current customer agreements" also gives the company the option to change their view, as the "customer agreements" can change. Finally this statement is still referencing "negotiations" and negotiations can and do change. Overall while a quick review of the statement suggests the sales are a forgone conclusion, a careful review of the specific wording indicates that the company have left themselves a total of six abilities to back away from these statements (which is rather amazing when the statement only contains a total of 17 words).