I like your enthusiasm TD but I would like to temper it with some comments:
BACKGROUND:
1. Technically the LYC SP is in an upward trend.
2. The REE market and LYC's business fundamentals provide strong support for continuation of the SP uptrend.
3. The LYC SP could retreat to 13.50cps and even 11.50cps without breaking the SP uptrend.
4. The North Korean situation is causing massive market uncertainty. It may all be political bluster and blow over BUT it may not,
5. There are 274m warrants (11/8/17)exercisable at 0.05 still to be exercised and sold. Their recent activity suggests they are committed to exiting their positions.
6. The shorts outstanding are around 120m (I've adjusted SHORTMAN for new shorts and deducted warrants exercised and sold since 7/8/17) . This leaves 154m (274-120m) warrants uncovered by shorts.
7. There remains 2667m convertible debt shares to be sold. I'm of the view they will not be able to sell on market without causing massive SP volatility. I would expect them to continue selling off market to institutions who now know they can buy at 11.25cps.
SO WHERE DO WE GO FROM HERE:
1. The WH's will want to cover their remaining warrants. This will involve selling 154m shares.
2. The institutions are very unlikely to buy on market. They will simply knock on the BHs door and buy at 11.25cps. Therefore the SP will not have any significant support from institutional on market share purchases.
3. Combining 1&2 with the current political uncertainty will I believe make it difficult for the SP to gain any upward traction. It would be more likely to range trade between 11.5cp and 16.0cps.
4. Once the WHs have done their dash and North & South Korea merge into one nation (?) we may see a resumption of the upward trend.
5. So I'm going to be a little cautious over the next 2-4 weeks and watch events unfold. When the stars align I'll top up on LYC shares.
Now the market is a very fickle creature and despite the above, your price forecasts may well prove to be right at the end of next week. We shall I hope see.
So
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I like your enthusiasm TD but I would like to temper it with...
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Last
$8.09 |
Change
0.070(0.87%) |
Mkt cap ! $7.561B |
Open | High | Low | Value | Volume |
$8.15 | $8.27 | $8.08 | $35.31M | 4.353M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 7192 | $8.08 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$8.10 | 4833 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 620 | 8.050 |
1 | 500 | 8.040 |
4 | 4222 | 8.030 |
1 | 100 | 8.020 |
2 | 742 | 8.010 |
Price($) | Vol. | No. |
---|---|---|
8.110 | 8945 | 1 |
8.120 | 22984 | 2 |
8.140 | 1000 | 1 |
8.150 | 3078 | 2 |
8.170 | 12051 | 2 |
Last trade - 16.10pm 08/11/2024 (20 minute delay) ? |
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