Q: Please may I have u comments and opinion on Lbnk.Is it buyable,and a good entry point if applicable. Txs for u usual great services & views
5i Research Answer:
LBNK market cap is so tiny, at $19M, that we would not suggest it. Shares are down 56% in the past year, and it is very hard to get investors interested in such high-risk names. It has about $2M cash but no revenue, losses and negative cash flow. It will need more money just to stay listed, and we would expect ongoing share dilution. It is is going to succeed with a mine, there will be lots and lots of time to buy this in the future as risk gets reduced with drilling and development. Insiders own 14%.