Good morning Dumaguete,
I'd like to suggest to you, that it may be of benefit to you to contain your emotions when you make financial decisions. I think your extreme dislike of the chairman is both irrational and based on emotions rather than demonstrable facts.
I will put up some rational arguments below to explain why I think the share price has tumbled rather than just abusing the chairman for my personal loss of funds.
I have previously been critical of management in posts when I felt that they had taken the wrong action and I outlined my reasoning according to the facts on hand but kept emotion out of it and was critical of specific actions rather than just ranting on about how terrible a person must be when they don't make me rich the moment I invest.
Below are two charts:
The first shows the decline of the Lindian share price from its highest point. And, yes, if you bought then and did not sell early enough, you will be feeling the pain. I'm significantly in the red myself so I don't even have to empathise, I can feel it all on my own without pretending.
The second shows the VanEck Rare Earth/Strategic Metals ETF over the same period which I look at to gage how rare earth and strategic metals as a whole are doing.
It is not hard to see, that the entire rare earth and strategic metal sector has suffered very substantially (yes, I understand that LIN has gone down even more on a percentage basis but that should be expected for a non-producing project during the time period when the Lassonde curve (on top of a declining sector) takes its toll.
To me these factors 1. Lassonde effect 2. Sector declining significantly are the main contributors to LIN's woes because the project(s) is/are still moving along nicely on the ground.
To me, while the chairman and the CEO are able to keep the project on track and manage to obtain offtakes and required permits, approvals and general cooperation from the Malawi government, I have little reason to complain about them.
At the moment, I am waiting on whether the low is in as currently I still think that a test of .135 may still occur to fill a gap that was left about a year ago. This is purely from a TA point of view completely independent from any fundamental analysis as from how I crunch the numbers, we should be considerably higher even when considering the decline in the sector.
I have a low-ball order in place just in case someone does test that gap because I am convinced, that even if the SP drops more on a technical basis, the fundamentals are in place and will bring the SP back up eventually.
Otherwise, I believe as the sector recovers and we are moving closer and closer to production for both Malawi and the bauxite project we will be moving up again most likely when the feasibility study spells out the numbers.
There are plenty of funds which will not invest before they see the FS but with that not far off, we may just see a few investors buying in anticipation as this is significantly undervalued in my books. I will be adding to my position once the momentum shows that the down trend has reversed and the gap is no longer a threat. I think that currently we are already moving from the down-trend to sideways and may even see the beginning of an uptrend. Although I think that an up-trend is likely still a few weeks and maybe a couple of months away as we may need to wait for a trigger (e.g. Feasibility Study,Offtake agreement and sector recovery) for sentiment to really reverse on Lindian. At the moment, patience is still required although there are plenty of reasons to have optimism in this stock.
Not financial advice, just my opinion.
