To be fair the ETF has been selling down on pretty much all Lithium miners since the beginning of the year while basically keeping a neutral position on the battery producers.
In saying that I am a bit concerned with their latest update which show them starting to buy up on the miners but not AJM, PLS OR GXY (actually sold more).
My other concern was Fridays trading. A lot of stocks were up between 5 and 18% while AJM was lucking to cross the line with a 2% gain. PLS up 8.18% and GXY up 13.16%.
Now I can hear you saying how can PLS and GXY be up when LIT ETF are selling. My only thought is that there are buyers to soak up the selling by LIT of PLS and GXY while there are simply no buyers for AJM.
So why is AJM on the nose right now? I read on Motley Fool (grain of salt) and quote
“This morning the lithium miner released its quarterly update. Investors have been hitting the sell button in a hurry despite the company revealing a reasonably positive quarter”.
So we have a company with what could be considered a positive quarter and still selling continues. I have said it before and I will say it again Hot Copper and to a point Twitter do have an affect on sentiment. All people have to do is throw enough mud and it doesn’t have to stick but if I was reading what is on HC then I would be saying to myself I think I should be looking for something else to suit my needs.
Once upon a time the only information on a listed company was with half and yearly reports and to buy the morning paper to see how the price is going. Now times are so different and while I am a big believer in letting the company do what it has to do I just feel that ( watch TM jump all over this ) PR is a bit lacking.
i.e. Unless there is some law preventing them from telling us, why couldn’t they tell us what price they are getting. I know it would make me feel all warm and fuzzy and give future potential holders something to go on, and
“Altura will receive payment for its cargoes on presentation of documents under standard letter of credit arrangements once the product is loaded and the independent sampling and analysis of the shipment has been completed. This is in accordance with the binding offtake agreements”.
“It should be noted these results are a combination of production testing on site and verification sampling from the storage facility itself. All samples were assayed by Intertek utilising the Altura owned laboratory on site at the Altura Lithium Mine”.
Now to a layman such as myself I sort of read it as testing on the dock but I could also read it as testing when it arrives on site in China. I am sure there are people who read announcements far more thoroughly than I do and if it has been addressed expect it to be pointed out but why couldn’t they simply say in their 09/10/18 announcement at the bottom of the page, yes we have received payment. In this way it stops the likes of Jens Soderlund on Twitter speculating (with no consequences) that AJM haven’t be paid. Today in the world of communication it sometimes the little things that are just as important as the big things and maybe it would keep the price a little bit steadier than what it has been whilst we wait for the institutional buyers to return.
I could go on but I am starting to bore myself so pity you guys. There you go Names some discussion for you.
