A look at how we are placed in the cycle as 2020 draws to a close.
Sector cycle
A substantial new bull run commencing with upticks in pricing, globally green focused policies, spotlight on EV auto and battery storage tech advancing at rapid pace. Lithium producers soaring again($1b+) and a few significant local sector M&As. Low interest rates, equities markets booming at ATHs globally. Plans continue for global stimulus, QE.
Stock cycle
2017 a strong year mainly based on future potential and top gainer 1,400% for the year.
2018 – 2020 project progress continues but a weaker underperforming period for the share price(priced between 4 - 10cents).
Fundamentals continued to build, Tier 1 asset, JORC, DFS, SEZ, Offtake to one of the biggest Lithium companies globally. Increasing industry recognition, timeline to construction stated within 6 months.
A project size of 400-1,000MT+ with decades long mine life 20-60+ years.
After 10c breaks convincingly, next stop is high teens (17.5c $500m+). Looks to be plenty of left in the tank). I have seen other stocks do the same, this would be textbook, and no surprise, but welcome for AVZ holders. There seems unsatisfied demand when looking at the queue. Will AVZ in time re-visit 3 year high of January 2018 which saw 37cents. 2021 may well see a return to form as AVZ gets its mojo back. New energy, belief. 2017 AVZ certainly had its share of price ignition and explosive runs.
So Technicals aligning with fundamentals for the new year.
“History doesn’t repeat but it often rhymes.”
Time or timing in the market. Buy low, sell high. Different ways to profit. All basics but easier said than done. Comes down to patience, conviction. Bravo if that’s you.
Undervalued in the stock cycle and looking at valuation of sector producers, where AVZ looks headed.
On more radars now, yesterday pip traders and stale holders were getting taken out by reinvigorated buyers. AVZ to release more news as it edges closer to production. Best wishes to holders old and new for 2021.
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