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Yep! Probably has 2mil in revenue now. With distribution, easily go to 10mil rev. With 1bil shrs out and a 10 multiple that's .10.
And the technology seems to good to be true. As soon as the independent third party reports the expected, good production numbers that will change in an instant!
Yeh, the weed in the garden is Morrinville. It has great potential as Walsh has said, but it is loosing money and needs capital expenses. Walsh has said this will be the near term focus. A strategic partner or sale is necessary. Private investors may be involved in shoring up their investments by helping to take care of this problem. Getting Morrinville into the black is also critical for even a .01 pps as Chemist said. Once this additional cash flow is established or the red ink is removed through sale, the disposal business will be solid. It won't be worth much but it won't go out either. Growth will be limited and slow. Limited by positive cash flow until the UT tests out and sales/distribution begins. The multiple on the stock will become a factor. The pps will increase to a point where the R/S can take place. At that point, with the increase in cash flow, equity financing may begin again but only to take the company to the next level. 2-3 years out for big money and a lot of ifs! Risk /reward ratio
Absolutely on #1, that's the risk. #2 has been confirmed: exclusive for non-hydrocarbon and non-exclusive for hydrocarbon applications, but since LEXG is so involved in the development and testing they will be the go to guys for distribution in Canada until others join in.
Yep! On the disposal business only. UT takes it to the next level.
As I have been saying: This is no get rich quick scheme! It will take time. This business has to be built and it is not a scam! Their growth is now limited to cash flow and not equity financing (dilution). With .6 M/qtr from Tero the costs will be covered and they can afford to wait for the UT to be developed.
Maybe, depends on how many people are involved but @ .0001gain/trade on an avg day of 50 m shrs traded/day is only $5000 total gain /day spread amongst everyone
All the shares are being held by venture capitalist that got shares issued to them for cash. Their investments haven't gone anywhere and they are in it for the long haul. They aren't trading in this secondary market with us. They put up cash for stock and warrants issued directly from the company treasury. Vista Capital in 9/14, Black Mountain Equity in 8/14, and several before that. These venture capitalist have millions tied up in LEXG. They aren't traders, they are investors. They along with several of us investors hold and control hundreds of millions of shares. There has been no news from the company, no reason to sell and exit our position at these prices (except to offset other gains for tax reasons). Only traders who profit from volatility brought on by hope and fear, and others who don't see through what the traders are saying are selling at at these prices and suffering great losses. The venture capitalist are surely not and neither am I. The CEO and CFO bought millions of shares. They aren't in this to make a living for a couple of years, screw over lots of investors and move on. They want to make serious money just like us! Give the business a chance to to be built! The minuscule amount of people that read this blog is not going to affect the big picture anyway, only the folks who read it and accept it. HANG IN THERE AND MAY 2015 BE A GREAT YEAR FOR LEXG AND ALL OF IT's INVESTORS!!
Tero makes .4mil/qtr, Morrinville will start making money, or be sold. The only thing that sinks this ship is if the UT doesn't work well enough to be sale able.
I just sold 39000@ .0008 to offset a gain and lower my avg. pps.
Aren't all the shares being held by venture capitalist that got shares issued to them for cash? Their investments haven't gone anywhere and they are in it for the long haul. They aren't trading in this secondary market with us.
I agree. Dilution is far less than Chemist thinks. Day trading and rotation at the bottom are far greater sources of downward pressure. When the real number of Outstanding shares is published in the Q4 10-Q and it is less than expected look for a nice move up, especially if income increases.
So the feeding frenzy is over and the trading sharks have left. We have just learned a lesson on how traders instill and capitalize on hope and fear. Those of us that still hold LEXG have had an opportunity to average down. Has anything changed? Yes, some dilution has occurred to buy 25% more of an income producing asset and pay off debt that was necessary. What does this mean? We will be waiting a longer time to see results. I believe the company will now have to grow within the constraints of its earnings and not how much stock they can issue. Is a R/S really going to help at this point...NO! Is issuing more dilutive stock at these prices going to help,,,,only if absolutely necessary. Morrinville will become profitable. Profits will increase and costs will decrease. Cash flow will be positive, debt may be restructured if necessary but progress will continue. 2015 will be a year of building, saving paying off more debt and testing and developing the UT. Management has said they need to get the pps up. More dilution or R/S is not going to make that happen. The only thing that will make it happen is earnings. IF the UT tests out as expected cash will flow in more rapidly but as it stands this stock is in for a long slow climb at best, we can't go down much from here. Hold or average down now. January will probably have enough good news to see the stock double. Hopefully the progress on Morrinville and UT will have the stock up to .005 by spring and everything moving in the right direction. This stock has exited the hype era and is entering the execution phase,, it's all about that from now on.
Me too. Over 2 yrs and an avg of a little less than .015. Just saying. The longs that don't want to wait are bailing out(sellers), the longs averaging down and the traders are buyers. It's not necessarily dilution. If you believe in use company hang in if not bail.
BTW, my last post also explains why so many shares are being gobbled up at these prices and why the volume has been so high. You traders out there know this too so quit blaming dilution, you are all in on this! Uncertainty and trading, they go hand in hand. Create uncertainty and trade to your advantage. Create optimism and trade to your advantage. You newbies: don't think for a second this blog isn't being used for profit! Who me? What? I would never...........B.S.
INCOME
Alta Disposal/LEXG owns 50% of Tero. I believe Q1and Q2 both showed about .4 mil/QTR REVENUE at Alta so Tero must have been twice that or .8m rev. Alta just bought an additional 25% of Tero. So Alta's rev should increase to .6m in Q1 assuming business is constant or who knows ....more.
COSTS
Morrinville does not make enough money to cover its costs and it needs capital expenditures to get it up to speed. Mr Walsh has indicated that he is looking for a strategic partner or partial sale to address the two previously mentioned issues. It has great potential. Once it is fixed up it will make good money too. He is not talking about raising money through equity dilution to achieve this. He also indicated he may have to sell it outright (which would put cash on the balance sheet). Either way the Morinville drain is being addressed. Who knows how long it will take.
VALUE
.6m/Qtr = 2.4m/yr. going forward. If costs get cut substantially, a nice profit is possible. With a 1.5m profit and 1B shares out = pps .0015. 20x today's price! Not even considering the value of the disposal sites.
UT testing for both water and oil will be concurrent in Jan. That along with profits and the value of the disposal sites, generates the possibility of future profits in the form of a pps multiplier. A small multiplier of 6.66 in this case would support a pps of .01.
So I say a .01 price by mid Feb is a reasonable expectation.which is 14.28 times today's price or a 1428% gain!
DILUTION
The extremely minuscule percentage of total shareholders that are on this site harp on dilution. This does not make sense to me. Surely some has occurred. But it does not make sense to seek equity financing at these prices. The R/S would occur first to get the price up before the level of dilution being claimed would occur! The pps has fallen some due to dilution but,by far, more due to uncertainty and trading. When news that reduces uncertainty hits the press the pps will adjust to a fair value. When news of potential income growth hits the press the multiplier will come into effect. Hopefully both of these will occur in the first half of 2015. This is what I'm talking about! All the rest is traders jibberish!
Nothing changes till next financial report. I believe the stock is being day traded by the tens of millions of shares due to the super low pps. I believe dilution is less than thought (about 900m shs out) and when the real O/S number is posted, along with improved income and paid down debt, the price will pop to .01 by mid Feb. After that it's all about UT but maybe .02 by mid summer. Let's get real; the company is not a fraud, management is not in this to only make a modest living for a couple years, the disposal business will be improved with a strategic partner or partial sale of Morinville, a price of .02 can be achieved with 1bil shrs out with the disposal business only, UT will take everything to the next level but it will take time, mid 2016.,
I don't understand why you think every multimillion share trade is dilution. It's just trading, not necessarily dilution! Why would Mr. Walsh be interested in giving away authorized shares at these prices unless he had no other choice. I'm sure he would want to get the most out of every share issued. A R/S would allow him to get more per share so he is most likely going to do that before he uses up all the shares. I don't believe he is diluting like you think. Everyone will be much better off looking at this as a developing company and not a get rich quick scheme. Day traders are responsible for volatility, not dilution, it's as simple as that.
I believe we have bounced off the bottom and with good news in the December report, out next week, we will be on our way up! We will be partying in Vegas together next summer! .02-.05 by then. No R/S till after successful UT news and much higher PPS. EVEN CO-pilot will be a believer by then!
Waiting to hear that a strategic alliance or partial sale of Morinville has occurred. That would fund the cap exp needed to get it in the black without dilution. When both disposal sites are bringing in good money, the bills will be less, savings will increase and investments into UT will occur. IMO the handling of Morinville is critical and when it is reported positively, there will be a nice pop.
Tero makes good money and an additional 25% ownership of it has been completed (most of the dilution over the last 90 days). When Mr. Walsh announces, hopefully soon, that a deal involving a strategic alliance or partial sale of Morinville has been completed that will finance the repairs and upgrading to 1A, it will not only cease to be a financial burden but also begin to make good money too. There will be sufficient cash flow to cover all expenses of the business and save for investment into UT. I believe dilution may have already ended for the disposal business. Dilution may occur again if cash flows are or become insufficient or faster growth of income streams are desired. I believe that with the incomes of both the disposal businesses alone and outstanding shares at 750m, the pps should be over .02 by March and .05 by end of summer. We should start thinking of all getting together in Vegas for a celebration, maybe a shareholders meeting! Thank you to all the "shorters" out there who have driven the price low enough to buy millions of shares! 2015 will be a year of saving, building, testing and proving of UT. 2016 will be the big pay year. But, thanks to the .0015 ish price now, life will be good while we wait.
Read the November newsletter again! Believe it or the naysayers. I believe the boss when he says he learned from his mistakes; he has to cut costs, focus on revenue and technology and grow more slowly. I don't think he dilutes as much as he thought he was going to when he proposed the 2Bil share authorization. He won't issue shares for venture capital at .002 per share! He has to get the pps and market cap up if he is ever going to attract venture capital and grow into the next phases. Wardlow has been a drain. Tero is making profits. Tero has been covering Wardlow. He will find a strategic alliance or sell Wardlow. This will stop the drain, put cash on the balance sheet and profits from Tero on the income statement. Tero profits will increase with the increase of 25% ownership. Going forward: profits up and cash drain down! Profits will fund UT revenue streams. Mr. Walsh has said there will be no dilution this year. I believe his course correction will minimize dilution next year and if it is done at all it will only be for growth that will offset the dilution and, after the Wardlow drain is gone, the Tero profits should cover admin, legal and consulting costs. The reverse stock split will not happen until it is necessary. Like the proposed name change it is "window dressing". Window dressing is only necessary if you want to attract venture capital. If you need venture capital you want to get it for the least amount of shares issued, that means the market cap and pps has to come up first. The time will come, WE HOPE, to grow the other income streams and capital could be necessary if the growth rate exceeds the capabilities of the income streams. These tools were put in place for positive reasons not negative ones. This is not going to happen tomorrow, next week or next month. RELAX! Let the business be built! This is not a get rich quick opportunity. This is investing in an upstart business, minimally proven technology, and young inexperienced entrepreneurs. They are under staffed and underfunded. Quit comparing them to established businesses. If their reports are late it is not because of fraud! Quit listening to the negative posters! They scare in order to profit! Someday soon they will be caught terribly on the short side and take big losses covering their positions.
See post # 9032. Ad must be referencing this report from Feb 2013. The ad ran in the spring probably before the idea of a RSS came up. A 20:1 RSS will lessen your # of shares by 20 times but raise the price per share by 20 times. It's a net zero gain or loss. Going forward after the RSS however, is a way different story. If before the RSS you own 20000 shrs and the price goes up a dollar you gain $20000. After the RSS you would only have 1000 shrs. If the price goes up a dollar you will only gain $1000.
NOW I REMEMBER, In Feb 2013, Ray Dirks Research, a respected stock research firm, made a claim very similar to the advertisement. Google Ray Dirks research and Ray Dirks Lithium Exploration Group. Let's hope he is right! Understand my forecast is based upon disposal revenues only. Everything takes more time than planned! Once the technology revenues start to come in, probably in 2016, that $2 -$8 forecast may come true.
He will, just takes time.
Remember, LEXG is a very small company. I think only 3 full time people. If the report comes out late it's not some huge negative omen.
See my post #8899, 16oct, I did talk to him one on one for 45 min. However it was a teleconference. Mr. Walsh, IMO, is not a shyster, and the company is not a scam. It s time to stop listening to the fear mongers and naysayers. As far as the advertisement goes, I haven't seen it, but there will be a reverse stock split in the future and that may explain it. The majority of shares voted yes for as much as a 20:1 reverse stock split. Take my $.025 forecast by summer, times it by 20 and you have $.50.
I think you better move on to another company and try to bully some other group into selling because the events of the last month at LEXG are making you look rather isolated!
No I was wrong. I also used today's price of .0004 instead of .004 which It was. 6.25 times is correct.
In post 9000 I made a typo. The gain I expect by next summer is 6.25 times today's price not. 62.5 times
Ok, I've read through all the posts since the special shareholder meeting and since I was the only shareholder to attend the meeting I had the opportunity to talk to Mr. Walsh, one on one, for 45 min. DILUTION IS COMING! There is no way around it, default on debt is not an option. The amount of shares that will be exchanged for debt I believe was inferred to be 500M shrs. That puts the shares outstanding when that stage is all said and done at around 750M shrs (shrs out at the time of the meeting was 250M). The company accomplished everything up to that time on 250M shares. So, going forward, with the debt and improvements and additional 25% of Tero paid for; it's might be reasonable to expect another dilution of 250M shrs to build out the other income producing areas of the business. So we are at 1Bil shrs outstanding by next summer. Sounds real bad until revenue is considered.
LEXG share of revenue for Q1 was $400K. It was the slowest quarter of the year. Tero and Morinville are being upgraded to full 1A capabilities which will increase revenue. LEXG will own 25% more of Tero which means 25% more revenue. So Tero must have had close to $800k in rev. in the slow Qtr. Going forward, Tero produces 1M in revenues. LEXG gets $750k., maybe more with good marketing (if I remember correctly, LEXG BUILT GOOD RELATIONS with companies in the area by letting them dispose for free for at least a Qtr). So it's not unreasonable to see LEXG revenues increase 300% by summer (.4-1.2m). This will end the need for dilution and fund further development of income streams.
Price per share? Who knows but Mr. Walsh says LEXG is on track to achieve a market cap of $50-100m in 18mos. If the low is achieved, on a linear scale, by summer, 9 mos. from now, a Mkt Cap of $25M divided by1B shrs out, equals $.025/shr. divided by a typical multiplier of 20 equals a required income of $.00125/shr., or $1.25M/qtr.
If Mr. Walsh can achieve the low end of his projections and my reasoning is correct on the disposal business alone the price per share could reasonably be $.025! That's 62.5 times the price today of $.0004!
At the same time, the debt will be paid off, the disposal business will be in good shape and..........
Income will be sufficient to fund growth of the technology income streams!
No wonder Mr. Walsh views the stock as way undervalued! He is buying and so am I!
I won't be posting again until I know something worth posting. I find some posts, like #8911, to be pathetic . People who know nothing, using fear based speculation for their own purposes. They keep stirring the pot of untruths trying to get the price to drop and throw in a "LOL " to try and humiliate thereby trying to establish some level of superiority. Don't listen to them, visit this blog infrequently, get the facts somewhere else, do what you think is best for you and someday maybe you will be "LOL " all the way to the bank!
I did express our concerns about a 20:1 reverse stock split, ie: no difference now, but going forward with 1/20 of our original expectations. Mr. Walsh agreed with the concern. I personally think that this ratio will not be this great. Mr. Walsh said has about 9 mil shares. Those shares are subject to dilution and reverse split actions just like ours. This proposal may end up being less than 20:1.
I was the only shareholder at the special meeting in Vancouver. This posting is from my memory and to the best of my recollection. I have a large stake in LEXG. I sat next to the securities lawyer and talked to Alex Walsh via teleconference for 45 min. At the end of the meeting Mr. Walsh abstained his vote for both proposals. Both proposals passed by about 5:1. Some of the highlights of the conversation were:
Finance: There will be more dilution. There is no way around it (unless there is a merger or business to business synergies, which are not off the table). There is debt to be paid off and upgrades to the disposal facilities, not enough revenue to do it and that's why more shares were needed to be authorized. But, once Tero is upgraded, business revenues will start to help the situation. I expressed to him the pain dilution is causing us. He said he would try and be sensitive to it, but default on debt is not an option. He said shares can and will be issued in lieu of cash for services rendered but not for management bonuses. He also said if I new anyone willing to invest about $3million these issues could all go away. I expect a significant gain in disposal site revenues in 2015.
Technology: the Austrian pump has been incorporated into the oil fluid upgrading prototype. The delay is in the modification to the housing. Still expecting delivery to Alberta in October. Testing and compilation of capability numbers are ongoing by SonCav for the water unit and soon for the oil unit. LEXG has the exclusive rights in Canada to use and distribute the sonic cavitation generator in non hydrocarbon applications AND the non exclusive rights in hydrocarbon applications, so they can participate, just not exclusively. SonCav has not decided if the machine will be sold or leased but LEXG will be well positioned to take advantage of opportunities.
Perception: LEXG and Alex Walsh are legit. I have worried about a sketchy past and pump and dump scenarios also but the most important thing I came away from the meeting with was a perception of legitimacy. In my opinion Mr. Walsh is no shyster. He is working hard to build a business with many constraints to manage and many outside his control. It all takes time. This business has an upside so large it's hard to wrap your head around it. The road is not short. The investment is not for the faint of heart.
50-100 mil market cap projection in 12-18 months: I believe the shares outstanding will be around 1bil. If the market cap is mid range at 75mil we're looking at .075/sh in two years ( everything takes longer than planned). Still a great investment.