ADN is an in demand stock. Insatiable demand at times, and anyone following the FA can attest to why.
I can offer up a comparison with regards to gaps.
September 2017 to Jan 2018 was the period in PLS's history when it started to really ramp up towards production. Offtakes/Mining Contracts/Commissioning/DSO etc.
There were substantial and easily identifiable gaps on the chart during that period (circled above). Like anything it goes to both extremes on a chart (overbought and oversold). PLS was overbought during that run on the 2017 lithium run, but then settled back to a nice range during the startup of mining throughout 2018.
They declared commercial production in March 2019 and from that point on the demand hadn't quite come on just yet as the market expected and the lithium market was flooded with supply from a few new operations (hindsight is a wonderful thing), which significantly dropped the lithium prices. The volatility has been lithium producers and explorers problem over the last 2 years. It has taken a fair chunk of time for the demand to catch up to supply but it feels like the lithium market is starting to turn the corner from the previous pain. Lithium is everywhere but processing to battery quality is the hard part. The demand is starting to ramp up and soon there won't be enough supply. For disclosure, I don't hold PLS.
The reason I say this, is because ADN probably has the world's best/biggest resource of Halloysite/Kaolin and the real kicker is that supply is dwindling and demand is sky rocketing. High quality Halloysite/Kaolin is not everywhere but everyone wants it. Put two and two together??
In my view ADN is in a substantially better position than PLS was and has a clear pathway towards production with relatively tiny capex of a product that will be in serious demand selling into a stable market. James Marsh states growing steadily over the last 20 years by around 5% per annum.
I could be wrong but sometimes life just serves you up something on a platter.
Gaps are there for traders to push prices around but when one finds a serious investment, some gaps become insignificant.
Oh yeah and the nanotech applications......... the Andromeda Galaxy is well past the moon.
ADN Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
(20min delay)