Looks like they're playing the Hokey Pokey with GXY. "You stick your left foot in... "
Anyway... yes it's depressing but I can't help but try and deduce a little logic from the games.
Thinking out loud here, DYOR and all the usual caveats..
Games and BS aside, GXY is what?
A lithium production company. Forget the charts, I think they are part of the problem.
Let's lay the fundamental cards out on the table for GXY.
- GXY has 3 sites spread throughout the world. 2 hard rock, 1 large brine.
- 1 site is in full production and turning positive cashflow.
- Southern Sal De Vida has been surveyed and DFSed.
- Northern Sal De Vida looks like it's going to be sold to POSCO for a large amount of money, which will in turn fund development of the southern basin of Sal De Vida, debt and dilution free.
- Sal De Vida promises to be one of the lowest cost lithium sources in the world.
- The company is positive cashflow.
- The company has NO DEBT. It's future development of assets will be funded from selling Northern Sal De Vida and in turn cashflow from production. This is turn will hopefully fund James Bay development.
- GXY has a small interest in another lithium company that could in turn make Mt Cattlin even more profitable by processing it's tailings if the technology comes off. (LPD)
- GXY is moving product and selling it. There does not appear to be a problem in the market for it's product.
So the fundamentals are impressive to say the least.
GXY had a large retailer following. It almost died. It came back from the dead, stronger than ever. Many retailers held strong and it looks like it has been rewarded.
Such turnarounds don't go unnoticed.
Institutions and Funds want to make money. Their natural enemy is... the retailer. They have NO respect for retailers. To them, your worse than the dogsh!t they scrapped off their $900 shoes. They see retailers as something to be used. They know how they think, they know how easily the freak out.
It's because the paltry amounts of money that retailers put forward, aren't paltry amounts of money to retailers. They've worked hard to put that money up to play with the big boys.
They know retailers will fold a lot quicker because
A) We are less financially stable than a large fund
B) We are driven pretty much by emotion.
So enter GXY. It's producing lithium. The market for lithium is not well understood by the lay person. The lay person still has no idea about the extent of the electrification of cars and land transport. No idea and probably not interested. As s result, the mainstream media doesn't cover it either. Average Joe knows about oil, because it affects him every time he goes to fill up. But not lithium, it means nothing to him. This ignorance is key. Because it's not covered by mainstream media or by large exposure to the general public, information about the lithium market is very hard to come by. You have to really seek it out yourself hence why a lot of us come here.
What that means though in the big picture is that THE FUNDS and INSTITUTIONS control the narrative on the lithium market. Because when the average retailer wants to go and invest in the sharemarket, the first place they usually goto is.... a brokers report.. which is controlled by the funds and institutions.
By the time it hits mainstream media, it's too late to make any meaningful money off it. Look at Bitcoin, that thing was simmering for years. Lithium will be the same when most cars are electrified. Lay the ground work out now before anyone really knows what's happening.
It will be too late when everyone knows about it. Don't you sell when the taxi driver starts giving you stock tips? Same with Bitcoin.
So along comes GXY. Look back at it's fundamentals. It's fairly strong. You are a fund. You want in. Other funds are buying like Blackrock. Only suckers pay full price though.
You control the narrative on the outlook of the lithium market, well your version anyway. You have the ability to borrow and short those stocks. Of course your going to use those tools to your advantage.
Now with shorting, given enough volume, you can now control the narrative on the chart too. Manufacturing patterns as you see fit and hitting those retailer stop losses because you know how retailers operate.
Looking at GXY, it's probably only one of the very few lithium companies you could orchestrate such a campaign against. Why? Because the fundamentals are so strong. It can take it. GXY isn't relying on it's share price for capital raising or covenants. It's debt free and positive cashflow. It's got both lithium production methods covered. It's well diversified. I could not see what is going on with GXY happening to other companies like PLS or KDR because the funds probably know of they did try it to such an extent with those other companies, they'd probably kill them making the whole exercise pointless.
The funds want your shares. They don't want you to make money. They want you to pay them to make money for you. They want to make it look so difficult that it looks like only they can do it.
Look at the percentage of retail holders of GXY over the past 3 years. The trend is fairly clear, down.
MS has clearly borrowed these shares. If your an institutional holder, of course your going to lend them out for shorting, these a fee to be paid for it. And you get your shares back at the end of the day. Easy money. If I could lend my shares out for shorting and get paid for it, I would too because I win both ways and I know the fundamentals of the company. Hell, I'll buy more at a discount from my shorting fees.
At the end of the day, those shares have to be returned.
I'm not trying to convince anyone to sell, buy or hold. I don't judge anyone on their position.
But I can see a glimmer of logic behind the games going on.
