Firstly, do not be too disappointed with the performance of LOK on the ASX today.I suspect that many buyers of LOK over the past few days were/are in it for a short term trade and with the breakout of war a serious possibilty, a strong bearish sentiment is enevitable.
However I think that tonight, the US market will more accurately reflect the very significant results that LOK has achieved over the past few months.
I agree with you entirely re:the PPC model and the way that LOK has cleverly positioned itself as the trail blazer so that it is now set to reap the significant benefits that will result.
With EBITDA of US$25m forecast for 2003, and with Japan and the UK only expected to break even this year, the potential profit forecasts for 2004 could be enormous.
The recent settlement of the BT loan (arising from the BT/LOK JV) was a sensational result for LOK, having to pay to BT only US$5m cash and 1m LOK shares in full and final settlement of the US$40m loan.
After listening to the LOK Directors give a review to date, answer various shareholder queries and provide a summary of the company's prospects, I am of the view that LOOK(the US shares) will be close to US$4/share very soon. This roughly equates to a LOK share price of 34c.
Note also that LOOK closed at US$3.48(up 34c) early this morning, PRIOR to the announcement.
It is the US investors who will set the LOK price, for us to follow tomorrow.Tonight will be very interesting!
LOK Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
