May. 28 at 2:18 AM
$LGO Initiated a tiny starter position in LGO after weighing the risk and reward.
I fully recognize this is a highly speculative name with a stretched balance sheet, with total debt above the current market cap, so I am treating it strictly as a lottery ticket. Either it grinds down to zero, or management stabilizes the business, vanadium prices cooperate, and the equity eventually rerates into at least the low double digits.
In my view, the stock has been excessively punished, trading under one dollar and well below book value after heavy selling and dilution. A lot of bad news is already priced in, and there is a real chance we are at or near a bottom.
Not financial advice, just my framework: tiny position size, capped risk, and asymmetric upside if the cycle turns.
