Chart, page-15746

Hey @asb83 , this is what you told us a few months back, at $1.14 on the way down:

"Current profit doesn't justify current market cap - this is a resource stock and therefore should trade on a multiple that reflects a resource stock"

I am intrigued by this in light of your recent purchase.

Now that you have apparently bought in, can you please explain why the above does not apply?


Perhaps our profits have since dramatically increased and we are therefore now undervalued?

Nah...that doesn't really make sense because only weeks ago you told us:

"GXY would surely be looking at a price sub US$500 now? From memory, GXY were getting low US$500s in the Sep quarter"
"I see prices going to around USD$450/t and then hovering around there into the foreseeable future. "
"once you factor in capex, they would surely be under water."
"It doesn't take a rocket scientist (or lithium expert) to know that the price of lithium will continue to decline well into the foreseeable future."
"Mt Dudlin could be months away from going into C&M."



Perhaps you could share with us why the sp is rising, despite the "sp won't improve until lithium prices increase"..?

I'm just trying to understand more about why suddenly everything is different, and why you would actually buy into a company with an apparently rubbish outlook and one which you clearly despise, in light of your recent comments including:

"The price of lithium continues to tank unabated"
"The share price will follow the price of lithium as margins are slim at best and its assets continue to diminish in value and even some are liabilities"
"Little players like GXY and co are just a casualty of an overhyped market that hasn't and will continue to fail to live up to expectations"
"My 12-month target is 60c." (Dec)
"they have been tempted to buy all the way down thinking that they are getting a bargain only to realise that it wasn't a bargain after all and they were sold a rip-off lemon.. over and over again"
"How this is still a $400m stock is quite a mystery"
"Current market cap simply isn't justifiable for a company that is barely profitable at best. I can't see how it deserves to be trading much above cash backing." (at $1.18)
"If anything, I think the market is being generous with its current valuation of the company." (at 86.5c)
"GXY holders have had to deal with having one of the worst management teams on the ASX"
"Averaging down has been a foolish move" (86c)
"Mt Dudlin is just that - a dud! SDV is years away from any type of production (if ever)"
"brokers rate SDV a 50:50 chance of ever getting into production"
"Money spent on SDV is a waste given the asset is effectively worthless."
"I hope holders have been using the recent pump over the last few days to reduce their holdings." (at $1.02)
"It's going to take another year or two until the market is in more equilibrium than the current lopsided state of affairs where there is no shortage of supply." (Oct)
"The next support line on the chart is around 84c and then 67c. 67c is around cash backing? It might be worth a punt around there." (at 92c)
"My 12-month target is 60c." (Dec)
...The list goes on, of course.

Certainly doesn't sound like a company YOU would want to invest in...

Or perhaps all of these "concerns" never applied and were all part of an ongoing FUD campaign to support a short position, full of random "fundamental" claims that were just nonsense..?

It appears that there are indeed a few around these parts that will say anything just to make a buck, regardless of what is reasonable or what they actually believe...

Over to you champ to enlighten us.
No doubt you will say that you are just flipping another trade and the above all still apply; what other choice do you have really..?


(where do I find the smug smiley face emoji thingy..?)