I agree in theory of what you two are stating; however, one should also recognize what happened earlier in the year and last fall when good news, higher volumes, and price increases occurred. All it did was provide a conduit for unloading shares - essentially many speculators were waiting to unload their shares as soon as sufficient volume was present. I would suggest that using $125,000 to buy 500,000 shares at this point in time would be very short sighted and would not achieve its objective. Yes, you might raise the price to the low to mid thirties, but it would likely trend right back down to mid twenties. I think management should be more focused on the 43-101 then trying to make the share price appear better in the eyes of investors. Right now, 95% of mining juniors are trading quite similarly - LTH is no different - selling persists and people don't want their money in a sector where the metal prices are very soft, economic outlook is poor, and overall sentiment is negative. Thus, many will say this is at least a year hold at this point to get the returns desired - so what does burning $125,000 at this point do to help that....IMO - absolutely nothing. The price will recover in time if Lithic meets their objectives. It isn't just one or two sellers that require clearing out - there are more sellers than that, and any volume spike, more will appear...I can assure you.
As for lack of results - this is an old story and I am not sure what your implication is. I don't think that Chris is holding onto poor results - what would be the point? You have to release them sooner or later. Also, this week is not a prudent week to release news. Find me a company receiving a quick turnaround on assays....it just isn't happening. I would say that aside from hole #4, Lithic hasn't disappointed yet.
As for insider buying, I totally agree. I feel that if Chris were to pick up a few shares here and there it would send a message to shareholders. Yes, something like 5,000 shares is only about a thousand bucks, but it would be positive in the eyes of shareholders nonetheless. The fact is, management has a little nest egg of options and has never bought shares on the open market - I don't like that at all and this has always bothered me. I hold more shares than Chris, accumulating many in the 24-32 cent range, and I now feel like a douche bag. Why in the hell should I be holding more shares in a company, where the CEO, who runs the entire show, doesn't........ |
