LBSR is about 600% Over-Valued
Another user called me out on my fundamental knowledge of LBSR so I felt abliged to indulge him
IMHO:
Yes you are right about the chart caring nothing about fundamentals. That is exactly what its supposed to be, to be used as a compliment to fundamental analysis. Neither can ever be perfect.
My view on the fundamentals are pretty bleak though. I figure LBSR is worth max about $0.016/share
If 13% of Big Chunk was sold for 1 mill cash, then the entire Big Chunk project could be sold for 7.69 mill approx. That means LBSR still owns approx 6.69 mill worth of the Big Chunk project with their 87% interest. Even if we assume the total value of all projects 100% owned by LBSR is closer to 10 mill, we still have to factor in the new 3 mill in convertible debt now owed to Dynasty. That would put the free and clear value of the projects to LBSR at approx 7 mill. Now divide by 436 mill shares outstanding and you get a possible fundamental value of about $0.016. With LBSR market cap at around 48 million I think it is trading now about 6.5 times its fair valuation
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