I understand the idea behind "free-carry," but I find this mindset fundamentally flawed. To me, it's a way for people to rationalise significant losses, whether those losses are realised or still on paper. A loss is still a loss, no matter how someone chooses to frame it. But to each their own I suppose.
I'm not a strong believer in chart analysis (probably to my own detriment, but I still think it's witchcraft/voodoo). I think fundamentals and herd behaviour ultimately dictate the market. IMO WR1, along with many other companies, isn't declining because of some mythical gap acting as a target, but because lithium prices are hitting new lows daily. Once sentiment shifts, the share price will rise again. It’s just a matter of waiting, and those companies (and individuals) who have the capital and flexibility to endure the "lithium winter" will come out on top.
Based on the comments on the LRS threads, it seems that company didn’t have enough capital to weather the downturn, causing financial vulnerability which led to them being acquired by PLS at a price that many holders seem unhappy with. Like you, I think the outcome was fair for both companies, but I also believe that if LRS had raised funds earlier (like WR1 did), their management might not have been so quick to sell out. With $50 million in the bank and a few less drill rigs, they might have been able to hold on and not be forced to accept a TO at market lows, but that ultimately didn’t happen. LRS might have been the next Sigma, but now we'll never know because is seems that their management were more focussed on selling it than developing it. While you might not appreciate Chris Evans' "salesmanship", I prefer solid capital management over salesmanship any day.
I do agree with you about focusing on the negatives rather than the positives. I tend to do that with most stocks because while anyone can spot the positives, I believe the negatives carry more weight—maybe that's just my pessimistic nature.
My pessimism is also tied to my scepticism though. When I asked, "haven't you held since above $1?", I expected your initial response to be more transparent. Instead, you mentioned picking some up in mid-January and now being "free-carry." It was only after I pointed out your posting history that you admitted to holding earlier at a higher price, and then casually mentioned that you've been "in and out of WR1 on a few occasions." If that's true, it seems like it was more than just a few occasions, and to the casual observer it looks more like you just rode this down along with everyone else.
Anyway, good luck with your investment here, and best of luck to everyone else as well.
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