2021 Charts, page-950

I understand that feeling but it is normal. The nasdaq has become the barometer for momentum trades. The FANG trade plus the likes of Tesla, enabled with massive liquidity injection and super low rates. It has been pricked and momentum and ‘hot’ money is leaving spec stocks. But share prices oscillate with considerable variation around a stock’s intrinsic value (which is variable in itself according to subjective analysis ).

I’m saying if you ratchet targets down just because the share price has exceeded your target on the downside it starts to make the analysis and judgement around fair value meaningless. I was a fund manager. Investment bank stock analysts fall into the trap all the time. They see a stock halve and, afraid to back their previous analysis (which no doubt they thought highly of at the time) they reduce their target to avoid looking wrong and reverse engineer the analysis to justify the price. It is usually the best time to buy.

The fundamentals are a lot better now than when the stock price was last 7.5c. Significantly derisked, 2x lithium prices, exponential ev demand growth, green US president, huge economic and ev sector stimulus. Yes it might touch 7.5c but no it is not a certainty and it just means the share price will be further from intrinsic value than ever (IMO ). Amplifying the case that it will can be self-fulfilling (read soros) and it will only serve the pros well. Retail investors will be scared out of the stock.