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AVZ

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78.0¢ avz minerals limited

Because if AVZ was trading while Zijin are causing their...

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663 Posts.

129

02/07/22

11:29

Post #: 62333084
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Originally posted by 7seven7: ↑

As someone who doesn't hold and is not short either (but still keep an eye on AVZ as I held it back from 3c-->28c odd a few years ago and it's an interesting story to watch unfold), I'm a bit lost as to why majority of holders here seem to be happy the longer this stays in suspension... is it purely to delay the damage/paper loss to your portfolio?

Li stocks in general have been hit pretty hard since AVZ went in to suspension so there'll already be a lot of 'catch-up' selling pressure when this reopens from people looking to exit or reduce exposure to Li.

Global markets have widely tanked, people are selling to get cash, particularly at the more speculative end in stocks that don't make money today.

Interest rates increasing, leads to more selling pressure as people need the cash for their loans rather than speculate on pre-project stocks.

Then there is the unfortunate reminder that this event will give people about projects in the more challenging duristictions and with Chinese partners.

Then finally there will be short-medium term traders who will be turned off of AVZ after having their money tied up for a long time... more selling pressure.

I just don't understand at all how this long suspension can in any way end up being a positive for AVZ. The sooner it re-opens, the less reputation damage there is and the quicker it can level out with new investors who absorb some of the selling pressure.

Even if the news is 'positive' and AVZ retain the previously expected level of interest in the project (which is what was priced in before anyway), it's hard to see this trading too far above 60c when it re-opens due to the above points and people reassessing risk sentiment to this sector and this stock in particular?

What am I missing?

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Because if AVZ was trading while Zijin are causing their ownership chaos it is a double whammy when combined with the state of the market. At least when trading starts, the former influence is removed. Seems pretty straightforward.

AVZ Price at posting: 78.0¢ Sentiment: Buy Disclosure: Held
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