Guzman,I agree with your view on management's and analysts'...

Guzman,

I agree with your view on management's and analysts' unreasonably optimistic forecasts in the past. It is hard to challenge assumptions in court as they are only assumptions with lots of caveats.

Investors' attention should be directed on management's decision to merge with Lithium One and Sdv and whether the management knew then that they have little support from their Chinese investors at that time. This is when everything went down hill. Galaxy has swallowed much more than they can chew.

I resent the xenophobic and ignorant comments about Chinese bankers/investors working to drive down the share price and to take control over the company at a low price. It is logically and legally (if one were serious about class action) unsound. At one stage, the company seemed to have the backing of a couple of Chinese state banks and probably Jiangsu provincial government. With the departure of Creat, which raise a good part of their capital from London AIM market, the backing from provincial Jiangsu government seems to be fading away (this is only my personal opinion). The Chinese banks would undoubtedly want to have their capital back. I don't know whether lender like Chinese Development Bank is allowed to hold shares long term or are their hands tied in a way that they have to continue to dribble the shares converted from CB and drive the share price further down. Perhaps the management should provide a little more clarity on this so that small shareholders are on a more level playing field to enable them to decide whether to hold or to sell. Having said all this, the company is now very vulnerable. I see no reason why some of the existing Chinese investor (CB and Share) would not make the best out of this dilemma no matter how immoral we think it is and I suspect there is any regulatory mechanism that can effectively protect minority shareholders at this moment.

Current management seems to be doing the right thing. This does not mean that they should not be held accountable for their reckless over-expansion in the past. For Galaxy's model to work, they simply have to raise much more capital right from the beginning or they were betting on a more rapid increase in Li's prices or else they just have to grow very slowly. The past and present management simply are incapable of turning things around and did not know nor care to manage conservatively. More fund raising seems probable unless bleeding stops, which I think most people in this forum would agree.

I think this is a very risky investment for small shareholder and punter. Do your own due diligence.