Lamboo Resources has been classified as a Phase I company and rated '1' on the five point PortfolioDirect rating scale where a '5' rating is the lowest risk...
Lamboo Resources has been classified as a Phase I company and rated '1' on the five point PortfolioDirect rating scale where a '5' rating is the lowest risk category. Lamboo Resources has been caught up in the excitement over graphite exposed companies. Since the cyclical trough in sector returns in June 2013, the company's investment performance has placed it in the top 1% of outcomes. Lamboo Resources is proposing a merger with China Sciences Hengda Graphite, an integrated producer and marketer of graphite products to Chinese users. Under the terms of the merger, Hengda shareholders will take a majority stake in the merged company. This is being done without an ASIC compliant independent expert report making it hard to assess the value for a current Lamboo shareholder. The transaction looks like a large transfer of value from Lamboo to Hengda for little apparent reason.
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
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