Fairly simple. for years Lynas has been overpriced when Profits and revenue and Market price was comp[ared to standard long term metrics. Many on This board pointed to how fast Revenue and profits would grow which they did. then projected Very high share price assuming the current price was fair. Then a resesion is Starting to hit This does two things. High fliers with high multiples are corected. also the multiples the market is wlling to accept are lowered.
Now a very fair price is probally AUD 6 ~ 7. Unfortunatly if you look at other times things like this have happened there is a momentum effect that will take price well below fair price. This momentum always takes longer to be used up than most expect.
LYC Price at posting:
$7.59 Sentiment: Sell Disclosure: Not Held
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