AKE 0.00% $9.83 allkem limited

is a Disallowed a pipedream?

  1. DSD
    15,757 Posts.
    I had never heard of the expression '5 bagger' or '10 bagger' until i joined HC some 16 months ago. in those days threads were full of predictions re companies being a 10 bagger and i can't think of one that ever did. However prior to 2008 there were shares in which the SP did increase 10fold and more.... with FMG proabably being the most famous.

    I bought my first share 40 years ago. By far the best trade i ever did was to buy CCP for 11.5c and sell for $1.99 after holding for several years in late 1990's. A few years after i sold the SP hit 13.oo before collapsing swiftly to about 60c. Apart from CCP i have only managad a couple of 3 baggers and until recently thought a 5 bagger (let alone 10 bagger) is something i would never see again. Afterall, the mkt is far more astute and news travels fast compared to even 5 years ago.

    But the news re Lithium ion batteries is extraordinary. In the space of a couple of months it has appeared as the 'de rigour' of green technology and the breakthroughs being made compare with that of the microchip some 20 years ago. EVs will be fast, cheap and quickly re-chargable. Incentives totalling Billions is being offered by govts to get the proven technology into mass production.

    What makes lithium such a stand-out is that the news seems consistently good. Battery weight is decreasing, power outputs are rising rapidly, cost is coming down etc etc. I keep expecting to read lithium causes cancer or similar but so far..... it is all good.

    So does lithium offer the world a realistic version of the fossil fuel automobile? I think it is safe to say: 'YES it does'. So how will this affect ORE?? At mkt-cap of about 30million it is a fly-speck. But ORE it holds some of the best lithium brine tenaments on earth. And their occur in a fairly reliable country. The possibilities are truely massive. Across the border 2 Chillian lithium carbonate producers are capitilised in Billions. Yup Billions! A huge bonus is the potash by-product covers about 50% of the lithium carbonate production costs.

    ORE's deposits are alongside a newly re-surfaced road and power(gas i think) supply. Within 20-24months it will be selling a product in very high demand and limited supply. The margins/ton will be exceptional.

    So does ORE have the potential to reach 4.oo and enable those who bought at 40c to claim a '10 bagger'?? I reckon it does. I keep wanting to sell half my shares and take a 100% profit at 62c. but am holding-on as feel the risk-reward equation strongly favours such a holding strategy.

    If i am right then 4.oo(within say 18-24months) is a 6-7 bagger at today's SP. How many shares can offer a potential like these??

    Remember this resource has a JORC and scoping study completed. this is very different from say a gold-miner extrapolating from a few samples found but no real quantaties & overall grades to support the story. Geez... i hope the next 18 months can fly-by.

    PS to 2ic, PP and others. Is the above scenario too far fetched? Comments welcome.
 
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