AVZ chart, page-3165

There are several basic keys ingredients that generally speaking need to sync up in my view to absolute maximize share price value of a stock. For example

1. World Markets need +ive sentiment. If markets are crashing or very weak it is unlikely that your share price will be hitting its highs.

2. Commodity prices (Assuming stock is a miner) for the element is in question need to be strong. For example thermal coal price have been weakish for quite some time now you will not see many coalers hitting all time highs. Interestingly the lithium price has not really retreated significantly at all. Or not to the same extent the shares in the sector have declined ie 50%. This mis-match is telling and is likely the cause of latest swing up.

3. Sector wide sentiment/expectation - This one is key for AVZ the sentiment outlook for Lithium industry was rocked early this year by suggestions of possible supply glut in 2022 (suggested by a couple of forecasts from a few Insto's such as Morgan Stanley) This caused a sell off of lithium majors impacting the whole sector. However it is apparent now after several months of sector downswing in lithium shares that Lithium prices have not fallen to match. This penny is now dropping for many investors as earnings remain very rubust/strong due to stubbornly high lithium prices.

4. The fundamental of the individual stock. If there is a string of +ive news flow for a company this will obviously have a +ive impact on share price. and may drive it to outperform its peer group.


So if all of these things aligned the share price would be maximised and AVZ would be above well above 50c

As for ORE well I notice it has bounced and it looks to be breaking its downtrend also So it will recover along with the rest of the sector.

PS: The LIT ETF rose again overnight I see.