GXY (ASX) Banter and General Comments

Originally posted by FrantzFanon ↑

TBH I don't have an explanation for this, beyond the standard 'boom/bust correction' line... won't go down the law of diminishing returns rabbit hole or get Marxist on the forum today.

The market cap for GXY at the moment is astonishing. It is idiotic. It defies belief. Am I speaking from frustration? Nope - it is objectively ridiculous.

I repeat - the current market cap for GXY, in relation to the actual material standing of the company, is objectively ridiculous.

I remember seeing one shorter on twitter comment about GXY a while ago - "I think the company is great, but I play the chart and the chart looks awful".

No one shorting GXY would say it's a bad company with bad prospects, but they have identified it as a company with an SP that can be manipulated easily, a company for which the jury remains out, striking that balance between uncertainty and promise which makes it a prime target.

But why is the jury out? What is it that makes buyers wary?

Can anyone credibly argue that Mt Cattlin is a dud? No.

Can anyone credibly argue that SDV won't happen? No.

Can anyone credibly argue that demand for lithium with shrink? No.

Can anyone credibly argue that JB won't happen? No.

I've not seen anything, anywhere, that constitutes a 'case against GXY'.

The thing is, there is no 'case against GXY'.

Every broker I have seen rates GXY as a buy. I haven't seen any target prices for GXY revised down.

However -

ORE is down. PLS is down to 79c. TAW is well down. KDR is having a horrible day.

The tide will turn at some point, and not just for GXY.

There are nerves around due to the Dow Jones, and the trade war gibberish. The general malaise is magnifying any concerns around Li.

I think that over the next six to eight weeks we should (should!) see the level of anxiety ease down somewhat and lithium stock pick up.

What we need is for the general environment to improve (some kind of resolution between China and the US, at the very least some more stability on Wall St.) to set a more positive scene for the impending GXY announcements.

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You ask "What is it that makes buyers wary?" My answer is I really don't know.