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While it's still under Napadano's number of 3.25
I don't like defending WALSH because I shouldn't have to, but this is his vision, his business plan, his baby. Unfortunately he doesn't have control over SonCav ( GD Glotech Intl.) He has bought the first unit, bought the distribution rights of the tech in Canada, bought the disposal wells to create synergies in mining lithium and agreed to using his first unit at Tero for the testing of hydrocarbon upgrades so he can introduce it to Canada and the world. SonCav IMO must be very difficult to work with.They do things their way and LEXG suffers the consequences. Will this always be a problem....who knows. Delays and complications in R&D due to engineering and manufacturing are however, expected but I don't think SonCav has handled them well. Maybe they have suffered at the hands of the contractors working for them, IDK, but so far their operation has been way below average. Communications from them to WALSH and then from WALSH to us has been pathetic and the cause of much mistrust. Much of this needs perspective though. These are not established corporations. They are both operating on minimal funds with minimal personnel relying on outside contractors to perform. It's so easy to loose perspective and believe they will never amount to anything or that it's all a scam. PERSPECTIVE........
Didn't I read that the 19th was the earliest they could enroll the next patient?
If it is Jordan, I bet it's a pre- injury photo.
So says you! But who are you? What are your reasons for slandering? What are your qualifications? Why should I take a comment like this seriously. Doesn't sound like the type of comment a person who knows anything would make.
I just visited my niece is Reno. She said they had broke ground. Real estate prices are booming. It's supposed to bring 130000 new people to the area. It's located about 15 miles east of Reno.
The good thing is that any of the parts that could have damage to them at this stage are replaceable, and we are confident that we will not have to replace the entire unit which would have caused many months of delay."
I thought WALSH said earlier they were set up to assemble many units per month because they were off the shelf parts. If so, why a several month delay to replace one unit? Just another inconsistency that keeps buyers away.
Must have lost a bet!
Hold it together.... This will be fun again and you will be back to your sense of humor soon
Q2 report out in Aug will have substantial income from using and distributing the tech.
I think the PPS already reflects this info. This does not overly concern me because it is only the disposal business. We are all waiting for the tech. The disposal business is just a ways and means to have some income from what is disposed there. Income for deposits and income from running it through the tech. It is a minor part of the business that still needs development from money brought in from the tech. The tech and disposal businesses are symbiotic and will generate synergies. The error was made when Morrinville was purchased. Only Tero is necessary for testing, demonstrating and selling the tech. The big money will be in the distribution of the tech.
AMEN,Sista! Am I making excuses for a shyster? Are the Russians impossible to work with? Are the Russians misleading WALSH? It's FUBAR! But I'm in deep and I don't feel like pulling out just yet. This experience will become pleasurable soon
Yeah...I'm a simple "big picture" guy....that why I'm not a chemist:), but you come to the same conclusion, price down 40x .... Dilution 14x...so that's why I say by far the price has been affected far more by reasons other than dilution....you say in addition to dilution....simpatico! But I do appreciate you detail guys! You help me build my simple big picture
The large block holders voted for it
NVIV also
My reasoning is the shares have increased 10 fold while the price is 1/100th
GMan...I empathize with you because I have had exactly what you say happen to me before but in this case before you sell out here are a few considerations:
1. Son Cav is the developer and shipper of the tech. LEXG is the purchaser, receiver, user and distributor of the
tech.
2. Lexg is completely dependent upon a company they have little influence let alone control over....this is part of
the problem. They are physically not co-located. LEXG is dealing with a semi-proven tech that still has
needed further development.
3. Equity financing has the advantage of not needing to make regular cash payments to lenders early in a
developing company's life when they don't have the cash, but they still have to pay for the money they use.
They pay with stock and while it is dilutive in nature it is the nature of equity financing.
4. WALSH is not diluting our positions because he wants to but because he has to. There are interest
payments to make on past loans and conversions of promissory notes to stock, etc. Fortunately for now the
majority of the borrowing is done. The disposal business is in need of capital expenses but will wait for the
tech cash flow to begin. The R/S, while predominantly viewed as a negative event, in this case is a
positive one because it is the only option. Without it the maintenance cost of the debt, conversions, etc.
would have been 20x more expensive and dilutive.
5. The stock price has been diluted by roughly 10x in the last year: 100mil share outstanding to 1bil.
The rest of the price decline is due to point 2 above which degrades accurate and timely information
and serves to foster the "scam" worries and emotions of fear. Time is money, or in this case shares of stock,
and any delays caused by #2 is dilutive.
6. By far, it is the traders that are capitalizing on emotions that are responsible for the majority of price decline.
In an inadequate information situation it's easy to elicit fear and get people to sell.
7. I choose to give the tech a chance. JMHO
Now that the 10q is out someone needs to get their arse to TX and find out WTF is up
The biggest bummer of a R/S is the 20x less effect a price move has on your account going forward. Now it takes a .002 move to get the same effect as a .0001 used to. A dollar gain on a million shares pre split will be 200k instead of a million
Wonderfully narrow sighted in a pessimistic way
Yeah, the dilution was greater than necessary because the pps dropped over time on the news of the special shareholders vote. As the pps was dropping the costs of building a business through equity financing which still had to be met became very expensive and dilutive to us. Far too many of the A/S were being used. It's a good thing the new A/S amount was so high. There is still an avenue to get the business built, 1b shr bank account which is worth 20x more going forward. The price already reflects the R/S. Now that it's done, if anything needs to be paid for with stock, guess what, the cost in shares will be 20x less and 20x less dilutive. To suggest there is going to be more mass dilution, as your post appeared to me to do, is inaccurate and unnecessarily fear inducing.
When the pps was in the trip zips, millions on shrs were issued just for interest. At today's pps any equity financing payments for anything would cost 20x the shares than post R/S, The post R/S pps will be less dilutive going forward. I don't understand your claims of a dilutive scam. What benefit or weath would this create for them? Please expound on your reasoning for our edification. IMO the R/S is a tool that if used correctly will be a benefit. Why does WALSH need both the 2Bil a/s and a R/S? The simple answer is that he has to, not that he wants to.
I really thought WALSH would wait for some testing to at least start before the R/S. With the delays, he probably has more interest due and doesn't want to pay it at such a low pps and use 20x more of the authorized shares.
Will probably all be updated post R/S
Also, with regards to the R/S, does anyone know how the prices of the convertibles and warrants are affected?
No matter what, I'm going to wait and give the tech a chance. It's all about the tech. The 10q numbers are all about the disposal business, and they aren't pretty. But going forward they are a minor player. I have been betting on the new tech and will continue to. I believe that's what all the venture capitalist are betting on too. Increased revenue from the tech will be used to help the disposal business, grow the tech distribution business, and purchase other opportunities to apply the tech. If the tech doesn't work well enough for the end user needs....game over.
Only if UT doesn't workout
Yes, there is oil in TX. so why not test there. This must be the unit WALSH bought (with his own shares) for LEXG. They are shipping the LEXG unit to Alberta. Since LEXG has distribution rights in Canada, the unit will be presented to potential end users from there. How much testing has been completed? I haven't seen any published results. I don't know how well it tested out. I can only ascertain that the water testing was successful because they reported having demonstrations for potential end users. The oil up grade unit, I believe, is a modified water unit. I don't think they are exactly the same. This unit will most likely also need to be developed and tweaked but, let's hope, not so much. The final test numbers that will be used to sell the service or unit to a customer will have to be good enough to meet their needs at a given price point which also meets LEXGs needs. This stock goes nowhere or to the moon based on the next several months efforts.
Nah........cash flow conquers all. Never say never. The realization that this is more long term is beginning to set in........but, if the tech tests out and can fulfill the needs of end users and LEXG.......2015 will be huge!
Why don't we have pictures?
Walsh is probably in Alberta preparing Tero and Klineline is probably in Arizona trying to get the 10q out. SonCav is probably working the shipment, insurance, and possible retesting issues. LEXG has had extra time to prepare Tero for arrival of tech. They probably would have spent weeks after the arrival still preparing. Hopefully the total delay time associated with preparing Tero will not change. Tero will now be completely ready to receive the tech and testing will commence upon arrival. Just need to know the extent of the damage and if any major components need to be rebuilt. Waiting on SonCav?.......again?
LEXG..the good, the bad and the ugly:
The Good: simple, clean executable business plan; use and distribute ultrasonic tech. NO complexities of R&D, manufacturing, warehousing/storage, large employee group, warranty and repair. IMO LEXG will buy the units, place them on sites and collect a fee for every gallon of fluid run through them. They will begin by using their own unit to generate cash flow to purchase more machines. They collect money for disposal services and monitized the water, oil and minerals from the site. They will probably use some additional dilutive equity financing at this point to grow faster and place multiple units. I believe I read in past SEC filings that their agreement with SonCav states they can have up to five units a month and the agreement is for 5 years from point of 1st delivery. SonCav will also receive a fee for fluids run through the machine. I have talked with a college professor that knows of this tech and agrees it can work. The need exists. Units are easily transportable (except by truck, ha ha) As cash flow increases LEXG will buy additional units and use them in other applications to generate more cash. A cash business. They could then buy other businesses, buy back shares, declare dividends etc.
The bad: Control; LEXG has none at this point with regard to the tech! SonCav is developing and manufacturing and shipping the tech. Walsh continually reports on what he believes to be correct only to experience a different reality. He is between a rock and a hard place; shareholders demanding information and another company that does things their way. Expect this to continue through the testing. SonCav will control the test schedule. The COO has a Russian last name. IMO he is Glotov's rep. Russians are difficult. This could even be a problem going forward in the distribution...let's hope not.
The ugly: the stock pps, number of shares outstanding and the market cap. The persistent perception of a pump and dump scam too. Improved cash flow and decreased debt in the next 10Q will help in the near term. Testing must prove the tech can meet the needs. SonCav most likely needs a better COO. Cash flow defeats all.
The bad and the ugly can be improved and although the are currently huge disappointments I don't choose to focus on them because this is a developing company. I choose to focus on the good because without that; you would be right.
Just my opinion of the big picture and why I'm still here
This last week has really left me uneasy too. An accident in Tx one week after it was reported shipped. Pictures of components that look like they are too smal and don't come close in size or shape to previous machines shown on the LEXG web site. Talk about damage to a tractor and trailer when all components are loaded onto trucks. CEO has provided plausible explanations which I agree with but why do we have to speculate? Walsh said recently he was going to be completely transparent. I want to see this improve. I understand the need for anti-competition secrets. Just say so! I understand that the small trucks may pick up components from different locations and they are all brought together and shipped with other shipments in a long range tractor trailer. WALSH, JUST TELL US WHAT IS GOING ON! We shouldn't have to try and connect the dots for ourselves. I understand it is SonCav that is building and shipping the units and that LEXG is just the recipient. And that WALSH is in Arizona or Canada and not in Texas so therefore doesn't really know what's going on......just say so! I don't blame Chemist for bailing. Although I am more uneasy than I have been since mid-December I'm not going anywhere. This is just a buying opportunity. Good news is coming. I don't want to sell my upside potential for this price.
I do believe this will ultimately be nothing more tan a buying opportunity
I agree completely. Also, most likely this falls completely on Son Cav's shoulders.
Waiting....but news this week would be a welcome surprise if their past performance is an indication. Remember they are an upstart with limited funds and therefore limited help to complete required tasks. If stuff is late don't ASSUME anything because if we do we risk making an ASS/U/ME. Be patient and let the business be built.
SonCav's site is unavailable also.
Yeah, I'm not expecting all in the next earnings report, but soon.....before a R/S. The R/S, in order to achieve the stated goal of attracting more investors, will have to take us to dollar land. Walsh told me Morinville was in the red and needed CAPEX. In a monthly PR he said he was looking for the strategic partner or partial sale to alleviate the red ink, perform the upgrades and get it achieving its potential. That alone will turn the disposal business around.
The testing of the UT, in Houston, has been going on a long time with stated private presentations/demonstrations. Contingency orders at better terms would be expected. St. George Investments bought 62mil shares last month. I'm sure Mr. Fife has Walshes' ear., along with Black Rock Equities, Vista Capital and the other debt holder. They have agreed to the moritorrium. They stipulated the R/S to attract more investors. Walsh has stated LEXG is on track to achieve a 50-100M market cap in 2015. This means the testing and tweaking has been going well.....well enough to ship a unit to Alberta. It makes sense that they would ship the LEXG unit; the one Walsh bought with his own shares (so as not to be dilutive). That unit in place at Tero for the testing will process the waste fluids that have already been disposed there. That will generate income during testing! That will generate distribution. Things are going to start moving along faster. Income will be sufficient to minimize dilutive equity financing. When the need to grow faster than the income will allow some dilutive equity financing will be utilized. IMO the R/S will occur after these successes not before. My expectations are based on stated goals. They are dependent on execution. They may be affected by SonCav's control. Just my version of the big picture. More than anyone else other than Lodoguy is willing to present.
Yep...the unit will arrive, pics will be taken and a PR will be made by the 18th. 10q will be late as usual... 23rd.
But....the news will be unexpectedly good.
IMO some realistic expectations are:
Morinville: strategic partner or partial sale generating cash for CAPEX / balance sheet; additional revenue
generator eliminating red ink, supporting itself and reducing need for dilutive equity financing
Tero: additional 25% secured at more favorable terms due to the drop in oil prices. Operation > 25% more
profitable.
LEXG UT unit in place and generating income from oil,water and minerals during testing.
Announcement that orders for the UT are already placed contingent upon efficacy testing that will support
end user needs. The projected revenue will support a PPS of .10 because....
Dilution: < 1bil shrs outstanding
At least these are some of the things I'm somewhat expecting.
Could be on a train
Shareholders' celebration in Vegas by October!