I have been watching the USA UAW strike threat, which is set for midnight tonight.
From reports, it is expected that strike will happen, and that it nay be protracted in to weeks, as the union sees the results of the latest labor threats to UPS, and the continued strikes in the movie industry which is at a compkete stoppage.
There is not a huge amount of news other than the anticipation of a work stoppage, but from what i gave read and seen, Japan amd Korea (both LYC customers) will be major benefactors, as USA consumers run into limited buying options from our "Big 3" US manufacturers. This would include all Japanese and Korean imports (less some of the high range Korean luxury models which do not quality for Federal EV subsidies), as well as Japanese autos produced in the USA, but whos' batteries are sourced from Japan itself.
With that all said, I noticed MP Materials was up over 4% today in New York. This potential (most likely) strike should be a positive for LYC, as their main customers are Japan and Korea. This could bode as a good catalyst for the next leg up starting when the ASX opens in 2 hours. Though, the momentum will not take place in a day. It will be determined by the length of the strike, among other factors.
The obviously downside may be a dip in RE pricing as certain USA battery makers may see a drop off in demand, as our auto makers shutter.
With our luck, such as it usually is, we will open lower, but the immediate momentum is on our side. RE prices have been improving, we sell our products nainly to the two countries who stand to benefit from the strike, and we have the processed materials needed, as LYC over produced as a defensive move against disputions during the Kalgoorie start up, and the (now) averted LAMP slowdown, because of the license issue.
Lastly, I noticed that State Street has stayed on the sidelines during this strike threat. That in itself is a bullish indicator (IMO).
I hope we do well, and I also hope the auto workers succeed in SOME of their demands.
GLTA.
LYC Price at posting:
$7.34 Sentiment: Hold Disclosure: Held
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