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01/09/18
16:36
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Originally posted by regal
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For anyone that's interest, the SP is totally disconnected with fundamentals. There are some points investors need to look at. Many here know by now I don't like the chart thread. Having said that my TA is better than my FA.
TA - Very few understand it. Charts are widely used by people in their 20' and 30's. Many use them as a self fulfilling prophecy. The theories of charts posted on HC are absolute rubbish. The software programmers of charts would be rich before trading houses since they are the ones who write them. Trading houses are full of cocky and arrogant charters who believe businesses are run to the lines they draw. Try to guess what charters are doing and get in just before their targets. To follow charts is to be lead. Millionaires and billionaires don't use charts, they use common sense and lots of it.
FA- the banks either employ very stupid people or purposely created a false understanding of lithium. Anyone with 30 minutes of research would know lithium is currently trading as a chemical and not a commodity metal. The lithium that go into glass and lubricants cannot be used in batteries, the prices are set to the need of individual users. How much is a piece of string?
Galaxy is a growing business and a value is applied to that business regularless what day traders think. From the posts, retailers buy high and sell low, yet they are always experts. They sell when they should be buying.
Ausbil is a managed fund, their increase in holdings mean more individuals are investing in the lithium story.
Bloomberg estimate 1000000 Evs are sold every six months. Assuming 50kg/ unit is 50000tonnes of LCE. 8 spodumene equal 1 Lce. 400000t of spod is use every six months. Four mines of 200kt of spodumene are used up every year for road vehicles.
Total world car units sold in 1 year is 78mil units.
To make it simple 60 mines at 200kt is needed every year for 20% ev penetration. 60 gxy(mtC) mines are needed per year. This doesn't include electronic devices or energy storages.
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That's an interesting spiel no doubt but it doesn't even come close to answering my question.
A suitable example for my question would be something like 'organisation X I saw had GXY valued at $3.12 target' or 'I read an article where their GXY target was $2.34 and they seem to think that we are overvalued already!'
Again I'd like to point out that these are not my views, they are only examples of what an actual answer could potentially look like.
And im also well aware that a SP doesn't necessarily follow fundamentals. 4 years following GXY will certainly teach you that.