I think there are several reasons why the share price has been dropping and none of them are to do with conspiracy theories about big players forcing the share price down.
(1) Management has lost a lot of credibility over the last few months re delays and ASX stuff ups.
(2) Many experienced posters have ramped the expectations up on the stock so much that any sniff of disappointing news sends the share price down. The drilling results were good but many people expected them to be sensational.
(3) Many new lithium projects are progressing quite rapidly which means that in 4 years time when AVZ might be ready to start production the market is worried about future over supply.
Nobody really knows just how big the Lithium market will be in say 5 to 10 years time. It may well be that there will not be an over supply of Lithium but equally there may be.
(4) Most people are expecting the company to either get taken over by a Chinese Company or for a Chinese Company to inject huge new funds into the company so that it can be developed to start production.
One current problem here is the spat between the Australian Government and the Chinese Government.
The Chinese are not happy and it seems that hardly any new deals are currently being done by the Chinese in respect of anything to do with Australia. Until this gets resolved I can't see the Chinese investing any new money in AVZ which means they will likely need to look elsewhere for funding.
AVZ Price at posting:
13.0¢ Sentiment: None Disclosure: Not Held
