It's all a bit of a mess, isn't it? I would expect that you are right, especially considering our valuation against LTR.
There is so much noise in the data. Crap spot prices with the argument of no demand, countered by sales figures showing high growth in EV and ESS sales.
If we go beyond the normal parameters, what WK patterns are linked to a recessionary story? Maybe not looking just at AKE but the ASX200. I would be interested in what you see there, by looking at the patterns slightly differently, if there are such patterns described and put in place.
Is money simply being taken out because the big money is preparing for a major worldwide recession? My gut says EV sector will remain strong regardless, especially with OPEC pissing everyone off that needs to fill their car up with gas plus the environmental narrative. But I suspect the bigger players are preparing for a different scenario.
My senses are on high alert at the moment. The more data I look at, the more confusing things appear, as the different stories don't play out. But I guess that is when the big players make the best amounts of money, in times of confusion, taking advantage of greed and fear.
Sucky for our sector is that the VW EV department is in a complete mess. We need them to do better to ensure growth is happening in full swing. They could be playing a major role in the narrative of a lack of demand. Not only are they not growing, they are going backwards. Tesla and China seem to be picking up the scraps, but that leaves pricing mechanisms less competitive.
By the time data becomes clear, it is too late.
AKE Price at posting:
$12.60 Sentiment: Buy Disclosure: Held
