Interesting"I'm skeptical about AGY's potential success." but at...

First 6218 Last

Share
Profile

Follow
Kookie

764 Posts.

100

10/01/24

17:58

Post #: 71818115
Share

Originally posted by Rob826: ↑

I share your perspective that the current low market caps of lithium companies may not be sustainable beyond this year. However, I'm skeptical about AGY's potential success. AGY is essentially the CXO of the brine sector, facing significant unavoidable near-term costs, probable high operating expenses due to its limited volume, and diminished revenue prospects owing to the prevailing low lithium prices.

IMO, AGY appears to be in a particularly unfavourable position to weather the current industry downturn, disregarding LKE as a producer. Most of the forthcoming Argentinian brine supply projects (Sal De Oro, Mariana, Pastos Grandes, Olaroz Stage 2, Centenario Ratones, Fenix, etc.) are well-funded and either completed or nearing the final stages of construction/commissioning. If any company is at risk of dropping out of the supply chain due to cost and scale constraints, it seems to be AGY.

Nevertheless, the upcoming months seem challenging. Although I plan to increase my holdings during the capital raise, I'm currently adopting a more conservative approach. Personally, I'm hesitant to endure a significant decline in stock value just to acquire a few more shares, when I've got the option to sit out the further declines. However, I am open to establishing a larger position at lower prices.

Wishing you the best of luck with your investment strategy.

Expand

Interesting
"I'm skeptical about AGY's potential success." but at the same time you say "However, I am open to establishing a larger position at lower prices."
Anyway each to their own approach - as long as you make $ (remember $ & timing is everything)

AGY Price at posting: 12.5¢ Sentiment: None Disclosure: Held
8 Upvote

0 Great analysis

Reply