Lithium stocks have fallen from their peaks. So who is worried?
If you read the headlines and many HC posts, the reasons would seem to be Trump, oil, trade war, oversupply, Dow and ETFs etc.
NO... none of those reasons at all. The real reason is a bunch of people behind desk shorting for a quick profit, manipulation at its best. Supported by banks like MS, Mcquarie, Credit Swiss and hedge funds etc. You also have the likes of SQM, happy to keep the junoir future competitors down and void them of fundings.
No doubt, there are also chinese elements keeping the prices down. The chinese, while all smiles and friendship have always been known to suppress prices in order to buy cheap. China is not the capital of the world and majority there earn very little. Internet devices made by Huawei do send data back to china, I unknowingly had one. Freedom including speach is often taken for granted. Ask yourself why so many chinese choose to leave their country of birth. Don't be surprise if china monitor HC posts.
To understand the lithium story we need to look at the current supply vs demand. Think of everything that needs a battery, the current supply is already tight. VW is only one of many autos, they have announced by 2026 they will stop producing ICEs. In 3.5 years half of their production would need batteries, on a linea scale 1/4 of production in less than 18 months. If a lithium mine was to begin construction today, first delivery would be 2 years away. Now add all the other autos you can think of. Home and commercial energy storages are also growing at the same pace, plus many more world wide.
How much is a lithium producer worth right now? You have the power to think. Investors are richer today than five years ago, they will be richer five years from now. Wealth doesn't dissappear, it moves around and grows every year. Demand for lithium is increasing by the day, the mines can't be built fast enough.
Sell your shares if you need to or buy knowing a new era is beginning. It doesn't bother me what you do. These are just words on a screen.
*30% polled in Australia say they want an EV.
*Goldman Sachs recommended buying GM and sell Tesla. Tesla now looking to buy GM factories. Game changer is unfolding before your eyes. The banks are wrong.
*With converters and battery factories planned outside of china, the Chinese spot price will soon mean very little.
* Take advantage of the manipulation , knowing the prices are artificial. The whinging and ramping are just that.
* In two years from now, some lithium producers profit will be more than their current SP. Shorting can scare some but not all.
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