Geopolitical Tensions and the Critical Mineral Surge: Why $ASM is Poised for a Breakout With the world’s eyes on Taiwan and growing geopolitical tensions, the global demand for critical minerals is reaching unprecedented levels. Taiwan, seen as a potential target of future conflict, is rapidly preparing its defenses—and the consequences for global supply chains are already being felt. As countries look to secure their strategic assets, critical minerals like rare earths are at the forefront of these efforts.Why This Matters for $ASMAustralian Strategic Materials ($ASM), with its operations far removed from regions of geopolitical risk, is perfectly positioned to benefit from the rising need for stable, non-Chinese sources of critical minerals. Countries across the globe are scrambling to secure these essential materials, especially in sectors like defense, technology, and energy. As the possibility of conflict around Taiwan looms, securing supply chains for these crucial resources has become more urgent than ever.$ASM’s Strong PositionSecured Supply Chains: With rare earth elements being critical for defense and tech industries, any instability in the South China Sea or Taiwan region is a wake-up call for nations dependent on these materials. $ASM’s supply of rare earth elements is a critical component in this shifting landscape—and it’s not subject to the geopolitical risks that threaten supply chains in volatile regions.Long-Term Value and the $7.80 Floor: Remember, the Koreans bought into $ASM at around $7.80 after conducting thorough due diligence. This sets a clear floor for the stock’s value. As global demand continues to surge and $ASM hits key performance targets, the market will soon realize this is far from the current undervalued price. Once we break back to $7.80, $14 and even $20 are well within reach.Strong Leadership and Company Performance: Rowena recently received performance rights, signaling that ASM has been hitting its internal targets. When the CEO is granted performance rights, it’s a clear sign that the company is delivering on its strategic objectives, which should give investors confidence in $ASM’s long-term trajectory.Short Sellers Beware – A Squeeze May Be ComingWith increased global focus on securing critical minerals, investors are waking up to $ASM’s value. The recent price action, coupled with long-term value seen by institutional buyers, points to a potential short squeeze on the horizon. As buying interest increases and the stock reclaims key levels, short sellers could be forced to cover, driving the price up even further.OpportunityWhile the markets are reacting to short-term volatility, the fundamentals behind $ASM are stronger than ever. With key resistance levels around .625 and .71 in sight, once these are breached, the stock could be on a fast track to reclaim its true value. $ASM is an undervalued gem in the critical minerals sector, and with growing global demand and strategic positioning, this is a company to watch.Hold strong, and don’t miss out on what could be one of the biggest breakouts in the market.Disclaimer: This post is for informational purposes only and should not be taken as financial advice. Investing in stocks involves risk, and you should conduct your own research or consult with a financial advisor before making any investment decisions. The author is not responsible for any financial losses resulting from investments made based on this information.
https://www.economist.com/asia/2024/09/05/taiwan-is-trying-to-learn-from-the-wars-in-gaza-and-ukraine
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