Q: Peter and His Dream Team
Recently, you stated there was no compelling reason to continue holding LGO..."moving on" was probably the best option. I am a share holder and of course under water. Now there is a new development...a strategic review. Do you think this has any real potential benefit?Also over a million shares sold near the close...is this just panic selling or has the ship hit an iceberg? Ha!Ha! Thank you for your information and insights...they are always valuable as us little guys try to compete with the big boys! Ha!Ha!
Recently, you stated there was no compelling reason to continue holding LGO..."moving on" was probably the best option. I am a share holder and of course under water. Now there is a new development...a strategic review. Do you think this has any real potential benefit?Also over a million shares sold near the close...is this just panic selling or has the ship hit an iceberg? Ha!Ha! Thank you for your information and insights...they are always valuable as us little guys try to compete with the big boys! Ha!Ha!
5i Research Answer:
The review really only references the Largo Clean Energy division. Often, these reviews amount to nothing, but on occasion can result in a sale, financing, partnership, spin out, JV or other initiatives. We would keep expectations low. We would estimate than only 20% to 25% of reviews actually result in a materially higher stock price over time (on the review news specifically). LGO declined 3.5% Thursday but is only down 10c since last Thursday. We wouldn't read too much into the decline. But we would not hold 'just' for this review.