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$5.28 galaxy resources limited

Ann: 2018 Half Year Financial Report, page-181

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Facthunter

11,480 Posts.

815

01/09/18

17:30

Post #: 35350256
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Originally posted by regal ↑

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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Thats all very well, except the no. of EV's the price of lithiun or the company's bank account dont move the sp.
Supply and demand for shares is what controls the sp and that in turn is controlled by a computer close to the asx and a man in an ivory tower somewhere.

GXY Price at posting: $2.73 Sentiment: None Disclosure: Held
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