re: news - my take on what was said

Just to start by saying LYC has been a good trading stock for me - quite profitable. However, I always felt that I wanted to take a parcel of shares and hold for the medium term, once risks and revenues were clearer.

Having read the transcript, I sold and will now only watch. Here's why:

"Nick Curtis: Cash flow projections are very much a function of forward revenue which we are not able to predict at this point in time. Brokers are probably best to give you a view on forward pricing.""

Really. Shouldn't the company be totally aware of projected cash flow, and especially expectations on revenue? It's one thing to not want to comment, but to say we have no idea....is frightening. Brokers offer their projections based on, amongst other things, information provided by companies. Not the other way round. And:

Nick Curtis: "I’d be looking for our own production stability and a macroeconomic revival to see, I hope, a better share price."

Again - really. Is he saying that perfecting production and improvements in the world economy will hopefully increase the share price?

And finally, cash flow does not equal profit. In such a carefully worded script, he mentions cash flow on numerous occasions, but cash flow positive only once. Selling products and getting cash flow helps. Selling at prices and in quantities that will ensure profit is very different. Operating at a profit relies on an understanding of world demand and product prices, getting production right and getting forward revenue estimates right. All things this company seems to have no idea about???

Guess I'll ask my broker - oh yes - don't use them - trust issues there! If the company doesn't know, then I don't and therefore am happy to watch from the sidelines.

Overall a 'feel good' announcement with no facts, director-speak terms like 'highly confident' and 'fairly good shape' are used along with a horrifically simplistic analogy about taking a driving test. Talk about dumbing it down.

Give us real clarity, with actual facts and clearer time frames. All too loose.

All my ramblings. No up/down/sideways ramping intended. Still probably a long term buy, if it survives the first few years.

Milesy