LYC 5.33% $1.60 lynas corporation limited

About Lynas and MolyCopr

  1. 199 Posts.
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    Kind and loyal shareholders of Lynas stock believe that the value of shares will rise between now and the next fiscal quarter in April. Much is being made of MolyCorp’s share price rise. I’d like to have my fellow shareholders optimism. However, the following may prevent that from occurring.

    Ms. Lacaze has made her statement “…Lynas does not expect to sustain the positive cash flow achieved in December into the March quarter.” With seven weeks to go in the current quarter, this statement does not give any positive reason for the stock value to increase. That’s it? No, but we’re working on changing the outlook? And I thought Ms. Lacaze was our leader.

    It appears that short selling of the type Mitsubishi engaged in with Morgan Stanley is once again happening though who the company or individual shorting is not known. To my way of seeing this, Lynas share price will crab sideways for the next seven weeks unless Lynas management makes some positive and sustainable announcement. But then Ms. Lacaze has painted herself into a corner of sorts.

    Lynas management is not known for announcements. The most prevalent is the Appendix 3B where shares and options are awarded for what shareholders might believe is just part of the job. Diluting shareholders stake in Lynas is done as easily as adding ice to cheap booze.

    As for directors, Ms. Lacaze, in the Annual Report of 2014, is stated as “… bringing more than 25 years of senior operational experience to Lynas, including as Chief Executive Officer of Commander Communications, Executive Chairman of Orion Telecommunications…” That’s a lot of time in communications for a person who doesn’t seem to understand the need to communicate with the investment industry, the business news media or shareholders. Being on a BRR Webcast doesn’t carry much water and Ms. Lacaze’s effort seemed to be marginal at best with sighs and other non-CEO mannerisms being evident. {Quotes from 2014 Annual Report]

    Ms. Conlon is noted as having “… spent 20 years in professional consulting where she successfully assisted companies achieve increased shareholder returns through strategic operational improvements in a diverse range of industries.” Ms. Conlon has watched Lynas share price drop from $2.60+ to $0.05 so one wonders whether she brings much to the board in return for $100,000 per year as a director.

    The other board members are I suppose pedaling as hard as they can down to the bank to cash that directors check but there’s not much to be seen in lifting Lynas up. I fondly call the board the Partners In Governance. If one thing is sure, the PIGs feed at the trough of gross revenues, not at the pail of net earnings. Maybe I’m insensitive but while the PIGs have loaded up over the last five years, I’ve taken a 90 percent hit in share price believing in Lynas.

    Lynas is a company whose management appears to be the pilot fish to the shark. China calls the shots and Lynas rolls over. Ms. Lacaze is a marketing ace yet doesn’t try for a niche but rather uses China pricing to validate Lynas’s problems. What happened to Lynas being a reliable non-Chinese source of REEs? Or that Lynas is a safe supply of REEs outside the scope of China. Or that Lynas has proprietary means of developing 99.99% pure REEs? There’s more but management hasn’t worked on the easy, low fruit so why go higher?

    I’ll finish with MolyCorp. One of the major reasons MolyCorp shares are going up is that its management communicates with the investment industry, the news media and its shareholders! Lynas communicates once every three months and anticipates the world will beat a path to its door. Does anyone know where Lynas lives? For communication skills Lynas falls behind North Korea. The Lynas communication creed is most likely an adaptation of the mushroom saying of keeping them in the dark and feeding them horses**t. Ms. Lacaze and the board need to realize we aren’t mushroom.

    Unless Lynas becomes professional in its method of communicating and marketing it will always lag behind MolyCorp and be vulnerable to shorting. With no news for three months from Lynas nothing good can be assumed to be happening. Good news is not kept in a vacuum. The Lynas ‘good-old-boy club’ needs to be dismantled and the directors need to start earning their fees. And showing up doesn’t count!

    I wouldn’t worry about the share price. You can’t control it. Start demanding that Lynas open up and communicate on a weekly or bi-weekly basis for starters. And if Ms. Lacaze is offended tough; my Marine drill instructors operated on tough love. They made me stronger and effective. Tough love is needed here.
 
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