All in opinion:
Oversupply? or Emerging Undersupply? It can turn quick......
Interesting story regarding US Domestic Lithium production last Sunday...Then later Rio announces the Eureka moment finding Lithium and a US Pilot plant. Emerging bull run? Hmmmm very interesting....Why is the US pondering doubling down on domestic Lithium and Rio having Eureka moments in Lithium? They may be looking ahead of ST fluctuations and looking forward MT to LT. Lithium market share worries not oversupply worries? Will Chile protests potentially impact supply just as the lithium market bottoms and heats up?.......
This is about to get really interesting over the coming months into a Santa rally and to me looks to have turned positive ST, MT and LT for Lithium.....
IO deja vu with Lithium?
I remember when many bought FMG at lows around $2 per share early 2016 and other IO miners at lows after a massive fall for FMG from $6 in 2014 when the IO doom saga was at its heights. We heard all the doom about IO oversupply for a few years leading up to 2016. It reminds me of the oversupply worries we have had with lithium for 2 years. That news is now old news as markets look into 2020 and beyond.... Look at what happened after IO supply disruption and after the IO price bottomed and refused to go lower in 2016..... FMG went up to $9!!!!!!. Lithium oversupply saga will end very soon.....In my opinion its already bottomed across the board.......
How long can a short last?....
Tesla already gave shorters a billion dollar lesson in holding short. With Teslas SP already 30%+ higher and on the move LT to the upside, they must be regretting not covering and going long into the next wave of EV demand...... Lithium miners are hugely undervalued........As the last of the shorters retreat, they have an opportunity to go long and catch Lithium wave mach 2......
Takeover / Merges in the Lithium sector?...
I'm sure there are countries/competitors (heavy in other commodities) who are envious of Aussie PLSs Lithium supply chain and profit potential in selling its high grade Lithium and soon POSCO downstream potential. $$$$$$. Takeovers/Merges on lithium players will potentially occur to ensure Aussie global dominance but time is ticking as the window closes....The time is now for opportunistic low ball offers..... If not, then pay more later as the market improves to the upside.....PLS is a potential takeover target and what better time when the SP and sediment is at absolute lows.
New highs....
Just like FMG from 2016 to now, PLS will go up beyond last highs. It will be Deja vu but with Lithium and PLS.
In summary:
PLS SP has bottomed.
Lithium price has bottomed.
Doom and gloom is exhausted
Oversupply worries of yesteryear will become undersupply worries as demand ramps up faster than expected and ANY supply disruption will raise the Lithium price and miners profit margins ...just like it did with IO.....
Tesla on the charge.....
VW and the rest of the ICE to EV pack will ramp up to increase marketshare as EV demand heats up....
Good luck holders........
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Price($) | Vol. | No. |
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