GXY (ASX) Banter and General Comments

I posted the below in another GXY thread:

Makes sense. I read the whole thread and just one post that's actually based on facts and common sense. The rest of the thread is about " down ramping" and "up ramping" and wild conspiracy theories. Some here keep alluding to some sinister motives, but no one is actually giving any details. How about just flushing out all the wild and crazy theories? Just for a laugh.

In my opinion the share price is just a function of the negative sentiment that's gripped the whole sector. Just take a look at the charts of other Li plays, both here and international. When it turns, they will all turn, but for now the negative sentiment persists.

I've had GXY on watchlist for a while but never really looked into it too much until now, as I think it is getting close to a potentially interesting level. On the surface it looks too good to be true, producing asset, plenty of cash, no debt. But it's obviously not that simple. All that cash and plus more is needed for development of it's assets.

One thing I find interesting and worrying is the 16% short position and it's been creeping up in the past month. Regardless of what you think of short sellers, they are there to make money and they are smart and do their homework. Looking at other similar Li companies the short position in GXY seems to be more or less consistent with others in the sector, so I don't think it is specific to just GXY.

As for the chart, I'm not a chartist but this is what I see:

I think it looks headed for the levels last seen in Jun-Sep 2017. So for me, I'll look to buy around $1.60, if it gets there, or if it break up out the falling wedge and breaks the downtrend. Given the amount cash it has and the already big short position, I think it would be difficult to see it going much lower than $1.60 or so, but of course we can never say never when it comes to markets. Anything can happen so I'm keeping an open mind.

Now for some interesting reading which appeared in the Financial Times just a few hours ago. Here is the link:

https://www.ft.com/content/d3935162-509f-11e9-9c76-bf4a0ce37d49

The article is not behind a paywall so everyone should be able to access it.

From the comments in the article, it seems like all roads lead to GXY. Livent has a market cap of around US $1.79B, about 3 times the size of GXY. Lots of deals are discussed and a lot of deals don't happen so there are no guarantees here but looks interesting. Let's see if market picks up on the article and see if the share price reacts. If there is no reaction, then we'll know just how negative sentiment is currently.

Anyway, this is all based on my reading of what's happening and could well be wrong on everything.

Good luck to all.