LEXG - Clear Financial Data Available Soon - All the next LEXG financial reports will be out in two weeks... I would suggest that we rely on this report to analyze financial data... this is a sub-penny stock where small changes can have major impact and happen very quickly:
1) A new subsidiary business "Alta Disposal" (altadisposal.com) is a real business with bricks and mortar... first real revenues showed on June 10-K... more revenues should be forthcoming on September 10-Q due out in a few weeks... I would expect material revenues to be presented... and LEXG is acquiring an additional 25% stake after first of year... This is the "real" business everyone says LEXG doesn't have and will never have...
2) LEXG has been in a period of "forced" dilution with high volumes of dilution being apparent during October and November... LEXG might have sold 400M shares to raise funds... these funds are used for two things... first, to convert debt which has high interest costs and can be toxic to the finances of a company just developing a revenue model after 3 or more years with no revenues... second, to complete the purchase option on the next 25% of the Tero Oilfield Waste Disposal operation due at or near the first of 2015...
3) LEXG has enacted significant cost reduction strategies that include: a) eliminating an un-needed COO position... b) the election to eliminate the contract CFO position which is now redundant with the new PCAOB external audit firm providing technical support... c) the CEO draws no salary as compensation... only compensated in common stock at a reasonable level equivalent to $120,000 per annum... d) NOTE the CEO had been on an SEC Rule 10b5-1 predetermined stock sale program... that requires a pre-determined number of shares be sold during a predetermined period at market price... with the recent announcement that the CEO acquired 2,500,000 shares in an open market transaction... this purchase comes with a vote of confidence in the company by the CEO... but more importantly prevents any further stock sales for a period of six months from the date of the acquisition...
4) It is important to be diligent in evaluating any company... but additional prudence is warranted for stocks that are in the sub-penny range... there is a lot of data available on LEXG... both old and stale... and new and valid... you should become familiar with how to use SEC.gov to search company financial data... and insider trading data... further you should keep your natural skepticism high with anything published on the web... a lot of what is published appears to be analyst articles... but can easily be questioned based on the motives of the author...
5) If you are watching this stock... or a holder of this stock... what you should monitor is financial data which is released each quarter with an SEC filing called a 10-Q (quarterly) or 10-K (annual) financial statement filing... a) on the 10-Q due out for the quarter ending September 2014 you should be looking to identify revenues from the partially owned subsidiary unit Alta Disposal... this should be the first quarter of material operations and thus solid revenues numbers should be expected... b) you should be looking to identify the number of common shares issued and outstanding... as of October 8th there were approximately 399M shares outstanding... it is expected that the company has been issuing new shares to the market to raise additional monies to meet operating costs, financing costs related to "toxic" financing arrangements, and acquisition costs to prevent further "toxic" financing arrangement, this is currently only possible through dilutive practices... these practices are not expected to be long term... Keep you eyes and ears open for additional "proof" of the Ultrasonic Technology equipment being shipped to Alberta for field testing... this is the "wild card" that can potentially make this stock "POP"... if the UT is tested, proven, and monetized this can add materially to our UPSIDE on the PPS...
GLTA LONGS!
