Ann: Update - Argentine lithium sale, page-40

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tradiesmedia

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09/05/18

12:42

Post #: 32981125
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Originally posted by Hevlet ↑

Just an observation if I may...

I'm in on this stock and like many I'm under water on it.

There has been lots of 'passionate discussion' on this company about why its currently 'under-valued' or 'over-valued' etc.

I think to be honest the simple reason we are at the share price we are is purely down to complexity, uncertainty and risk.

Many investors don't like risk and with complexities and uncertainty 'risk perception' goes up in investor's minds and stock values drift down.

The reason you can all have differing opinions on all of this is that whilst the Chilean court system is deciding the way forward there becomes a bit of an information vacuum.

As a result when information becomes uncertain its human nature to assume the worse. It doesn't actually change the chances of a successful or unsuccessful outcome but it changes the 'perception' of an outcome and therefore creates more risk to consider for new investors.

The longer the uncertainty continues the more the price will slowly drift as some investors decide the risk becomes too high and exit or reduce exposure imho.

Over time I'm of the view that if all the legalities get sorted out, then long term this stock will return multiples on the current price. HOWEVER, whilst the uncertainty continues we will continue to lag in the market.

The bottom line?

If you believe in the long term then all should be fine - but no point arguing with those who believe the risk is too high as its not a stock where you should bet the house. The truth is that for some the risk on this stock will be too high and they shouldn't invest until some of the uncertainty is removed.

For me - I'm comfortable with my investment on a long term investment horizon and expect multiples on the current price once all this mucking about in Chile is sorted out - but that's for individual investors to decide based on their own investment profiles.

Cheers - Hevlet

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The problem is people here DID bet their house on it, and are requesting ban for anyone that critic the proformance of this company.

The market is the market, no one to blame if you jumplion at 0.52.

Last edited by tradiesmedia: 09/05/18

LPI Price at posting: 27.5¢ Sentiment: Buy Disclosure: Held
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