Hi @Ryzie. I always appreciate your posts, thank you.
I do however think the comparison to commodities is mistaken. Lithium (and other battery metal) companies had their dark ages of 2018-2020 due to the underlying commodity prices cratering. EV demand simply didn’t meet the anticipated forecasts, and the supply way overshot the immediate demand. What has brought lithium, cobalt, graphite, etc back into hot demand is a structural deficit projected to last many years, as well as the *actual* rising EV adoption which is driving the demand. It is far more than mere investor sentiment.
These resource juniors are generally sitting on valuable (and sometimes scarce) resources which cannot be easily replicated - i.e. there’s lithium everywhere, but if you have an area of especially high concentration and low impurities, that’s a key moat for your business.
Junior tech companies don’t have the same moat - barriers to entry are low (especially when you’re just lending money) - nor is there a commodity price that underpins the sector. It simply relies on pure investor sentiment, which can be fickle.
Nothing wrong with being patient on an underperforming share price (so long as 1. you’re not overexposed and 2. are willing to cop the opportunity cost) but I personally think comparing commodities to tech is off the mark - and it’s been done quite a bit on these threads.
Cheers
IOU Price at posting:
14.5¢ Sentiment: None Disclosure: Not Held
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