Keep watching and waiting, or time to start buying?
I’d appreciate your thoughts. Thanks as always.
Marc.
Bleeker Street Research issued a short report (short attack) on the company yesterday, noting it believes its mining method is 'futile' and is concerned about 'massive' dilution expected. Shares fell 6.4% and are down 39% YTD. LAC still has $195M cash at Q1 but raised another $275M in April. This allowed it to meet several funding conditions and committments. It has no reported revenue and losses, being still in construction. It is fairly easy to criticize a mine that is not yet in production. Problems can occur, certainly, in building and production. 10 Bay and Wall Street analysts still view LAC as a BUY (5 HOLDS also). It is not a risk free stock, and any construction project has risks. But the reaction seems harsh to us on one report. We think it could be accumulated into further weakness. Institutional investors came in at $5 US a very short time ago, and now it is available below $4 US.