Still scratching my head as to how this stock appeared on the most discussed forum yesterday after more than a year in suspension (which itself is not a good look). Starting to remind me of my primary school days, "she said,he said" etc etc
It is obvious there are two strands of thought here:
Strand 11. WFE will never relist and/or will relist after the cobalt proposed acquisition falls through, meaning SH will lose all their money. To these posters, there is really nothing more to discuss if you have this view. There can also be no claim of ramping/down ramping in subsequent discussions as this stock is in suspension and cannot be traded. A factor on the share not relisting is wether they have sufficient funding to get it relisted - well the fact it is still listed on the ASX suggests it is been propped up with funding, full stop, because if not well it would be in administration. For those debating this point it is a case of either been right or wrong. These were the questions I had for management a while back and suspect these are still unknowns, albeit I had a go at answering them mysef when they had an Ann out back in June - Post #:
38949290My Perspective as a non-holder2. For myself when I followed this share it was really about getting my understanding up of the cobalt market per se, so on that front here is my view:
i. The cobalt market is turning and the closure of Mutanda has more to do with it enterring the high cost production given its resource: Post #:
39895550ii. The argument on various threads that cobalt (and graphite) in EV batteries will somehow magically disappear through soli state batteries IMO is misplaced. Solid state batteries are still conceptual in nature and a lot of R&D is still required for their development, and IMO even if they do get up they will serve the more top quality EVs (not your standard EVs that IMO will continue to have batteries based on NCM and NCA technologies). And I hold a lithium stock btw so there is still plenty of growth available in lithium even if solid state batteries don't flood the market. Refer: Post #:
39255454 and Post #:
39278027Strand 23. So it is really question if WFE relist how do you see it performing. Obviously based on its Anns it has a short term and long term strategy. The short term strategy is around been a Toll Processor, but now the delayed longer term strategy is about sourcing its own ore, refer Post #:
38982950, but one of its latest Ann's did put this sourcing own ore from own tenements, too me on hold. Refer: Post #:
39420086 The key risk too me around sourcing from a number of players is around consistency of the blend - Post #:
38188493 On valuations it is based on profitability - so that is the key. On valuations, it doesn't matter the size of the operation around valuations, it is about the profitability that comes with it and how that flows through to SP - Post #:
382105874. Some of you may be thinking Scarpa must be hungover, as some of these posts are very old. Well the reason why I have relinked them again is the debate here has been going around in circles for months. Clearly a lot of non-holders are in Camp 1 above, whilst the rest are in Camp 3. Ultimately it is about relisting and what the Prospectus says and with relisting will come the Independent valuation reports people here want.
5. Anyway reposting this as would be interested how people are viewing FA here assuming relisting occurs. Obviously a lot of missing variables here, but I would say after a year in suspension wondering how binding are those 'cobalt supply contracts' with third parties are, noting if those deposits are actually stranded deposits that I would suspect they too are waiting for WFE to relist - Post #:
38949290.
6. Obviously not a good look been in suspension so long. Hope if this does relist the wait has been worthwhile for holders. To those in Camp 1, time will tell who is right.
7. I prefer to sit on the fence and see what happens, but I see cobalt turning and if WFE does make it to market then ultimately the influence on SP is a function of profitability. For JB it is also about reputation since some of his other stocks haven't been doing well either, so again time will tell.
8. Can't believe I just contributed to his stock whilst still not trading LOL
All IMO IMO
