1MC 3.03% 3.2¢ morella corporation limited

AJM Chart, page-2842

  1. 55 Posts.
    lightbulb Created with Sketch. 59
    Good point !

    If anyone thinks the downramp of Lithium is new, think again. 2016 was Macquarie's attempt to downramp Lithium sector in Australia. Painful 2017 for me as I also missed the opportunity to sell when AJM hit 25 cents in 2016. Nothing happened in Lithium overseas apart from demand continue to surge and SQM, Albermale, FMC shares continue to perform. FMC reported margin from lithium division grew from 10% to 26%. Oversupply? Lithium bubble? Think again !

    Who will be most afraid when it comes to lithium boom? Oil & Gas, Coal, and/or nuclear. See how Exxon lost 5% last night due to missing earnings target? It means renewables and battery storage is growing faster than anticipated. Clearly oil is not the way forward.

    Instos holding significant share of oil & gas miner/producer in their portfolios will be downramping as much as they could to stop lithium miners grow quick enough before they could reshuffle their portfolio. If lithium share prices can't go up, it means companies will have to issue more shares (equity raise) to fund project giving instos the advantage to snap at a cheap price for a huge chunk of the company.

    Santos is moving to renewables, Shell is too. Oil and gas companies that can't keep up will fall in this disruption and fall very badly. The sign is clear to me.
    Last edited by noobtwd: 03/02/18
 
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