You made the decision that is right for YOU, at this present point in time, and hopefully it made you feel better about your investment and you slept a little easier last night.
One has to be comfortable in their own skin, of the exposure they have to companies they invest in on the markets.
Your appetite for SYA was, and still is there, you are just reducing your vulnerability to the downside.
We are quite aligned in our takes on the trading behaviour of this stock, and the psyche behind it.
They got to you mate, they are getting to me and judging by the recent posting, I daresay most holders here....and we know, that is their plan.
To get in your head and push you to the point where you give in, and let some go.....cheap.
Particularly when expectations are set, when the fundamentals are strong and improving by the day...particularly when we have endured SP and MC contraction, AND particularly when we are on the cusp of generating revenue and profit...where we have been conditioned to expect SP appreciation.
And this is the point. ASX green, SYA red ASX red SYA steady sometimes green. The TA, the fundamentals, the SP acts opposite to what one expects....it counts for nothing at the moment. This bi-polar trend has hit hard since entering the 200, playing with the big boys, of which the super funds are some of the worst offenders.
Eg, in co**sec, who DONT lend our stock to shorters, I can place an order at whatever price I choose, within reason. In my Aus****n Super account, the self management on the markets is run by UBS, I cannot enter a trade outside of 5% the buy price. Why? Because putting your shares up for sale, precludes them being lent out. If you place a sell at 50% above buy to leave long term, to ensure they are not lent out, they don't let you, but you can in co**sec. To do that at 5% is too risky... They rely on you going long on a stock, which will sit in your super for years without being traded...and they lend the hell of it out and make money, on your investment...which does not go into your personal fund...its just profit for them. I may be corrected here, they definitely keep the waters muddied, and my enquiries have just led me to a dead end. Do I get cash credited with any of this?...no, does my balanced fund increase by the money they make from lending these out...as far as I know, NO.
Back to the psyche. PL* was held back hard, well into production....when most punters were expecting it to run...many sold out. But as lithium prices soared, they turned a very handsome profit and the SP/MC took off. We don't have to worry about soft lithium prices ( except from the PLL offtake)so we enter production with a definite advantage and if played well, may be lucky enough to show profit very early on...lets see... And this is where they are currently holding us.
We know the fundamentals, the narrative is set...where we are so close, we can smell the cash coming in the door...and this is the best time to smack you down, to steamroll you and rain on your parade...or whichever saying you wish to use. This is the time, to go for the jugular, to get retail on the ropes and get them so punch drunk, they sell cheap. If I were orchestrating this, and I wanted your shares, that is exactly what i would do...condition you... Build, build, build. Set expectations. Then delay, delay, delay...market punishes....volatile retailers give up and leave in disgust. And that's how we are feeling right? Disgusted, beaten up, patience spent, ambivalence breeding doubt and uncertainty.... and contempt.. Dog stock, F this, F that, F the board.... I get it.....
The CR- What we are going through now, is normal CR behaviour. Back to the CR price, consolidate...and then move on....onwards and upwards...but it takes time, maybe months....we have seen it before and hopefully, never see it again....
The Comparison- V*L , the ASX lithium ESG darling, multi faceted, multi national energy company, already earning revenue, BIG cornerstone investors, production sold out with massive names associated, Stellantis, LG, Umicore, VW....biggest lithium resource In Europe..... for Europe... sounds similar to us with our Nth America exploits, ,exept we don't have our product sold out, we don't have Gina on the books, we are not earning yet... They were in the AU$6.26, did a CR ay AU$5.10 and are currently at AU$3.77....bloody brutal...that was 4 weeks ago. SP 6.26 to 3.77 and we are at a solid 18,with big walls at 17.5, and 17. If history is anything to go by, they may churn through, drop it through 18, where it will consolidate then bounce. Bounce when lithium price and the macro are recovering, we have shipped and have first revenue in the door, so it could be a decent bounce. Maybe. If that happens, it presents further buy in opportunities below 18, if not, you can buy on the way back up when things are more settled and nailed down., when most would feel a lot more comfortable.
Each to their own mate. And each of us have to cross that bridge from time to time and make that decision. I know you were at the end of your tether...you exploded a few times.
But glad you still hold, and glad you will stick around....
SYA Price at posting:
18.3¢ Sentiment: Buy Disclosure: Held
(20min delay)