Largo Inc (LGO): I stopped by here with the same question...

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Re: CritM3 post# 513

Friday, 02/08/2019 8:34:40 AM

Friday, February 08, 2019 8:34:40 AM

I stopped by here with the same questions, the Company is in great financial condition so why file a 750M shelf?

There were 3 factors in play which led to the share price decline, my target price of US$1.68-$1.70 is within reach. Now I must reassess my buy/don't buy decision based upon possible dilution.

Factors which led to share price decline:

1. The price of vanadium fluctuated wildly during the last 3 months of 2018, the metric I monitor went from $18.50 on 9/7/2018 to a high of $33.90 on 10/31/2018. It quickly started a rapid decline and now it seems to have stabilized around the $16.50 level.

2. The announced shutdown in 1Q 2019 will make YOY comparisons challenging.

3. The political climate in Brazil was not stable in 2018 but appears to be settling down.

I would love to hear ideas on the shelf filing, Largo was paying back debt via free cash flow, why the change?