One thing that is blatantly obvious within the market depth is...

First 127 Last

Share
Profile

Follow
jackofalltrades

1,596 Posts.

144

10/09/18

10:43

Post #: 35491172
Share

Originally posted by TheGekko ↑

But that is the share market. There are many, many stocks with inflated market capitalisations largely based on hype and hope. Many of them deflate and fall back to their true valuation over time. The beauty of all this is that there are many, many other stocks which are largely ignored by the market and are undervalued compared to their true value. LPI is one of those stocks and is a key reason why many long term holders have been accumulating and averaging down in recent months.

If you look across the resources small cap spectrum, you will see the vast majority of stocks have been hammered over the last eight months. LPI is no exception. BUT, as I have written before, given the length of the resource development cycle which is measured in years, many investors are not willing to wear the opportunity cost of committing money to a stock during a large portion of the cycle. Others do, but many dont. I believe that 2019 will be the watershed period for LPI and barring any adverse macroeconomic-event, will gain market traction from there onwards.

The number one catalyst for price escalation will be securing project financing/offtake arrangements with attractive terms and conditions. I also believe the quality of the Maricunga resource, the very impressive project metrics and the proven 99.9% BG LCE flowsheet present LPI/MSB with considerable leverage in any finance/offtake negotiations. Good times ahead. Patience required.

Expand

One thing that is blatantly obvious within the market depth is the psychological games being played. Every time the price starts an ascent and some strength starts to build, the sell side is stacked at .31/.315 to create a point of resistance. Question is, is that so the buy orders can be filled by the same players, or something else? I guess it's semantics really, but intriguing nonetheless, and when substantial news comers through the upward momentum will take care of the gamesmanship.

LPI Price at posting: 30.0¢ Sentiment: Buy Disclosure: Held
Upvote

0 Great analysis

Reply

Top Stories

Trump just dropped a 200% tariff bomb. Here's how to cash in

Week 28 Wrap: Tariff chaos back for some reason; CBA holds strong

AII

Inside the depths of Panasqueira: A legacy carved in rock

CWX

Carawine faces Fraser Range JV collapse as IGO moves to scrap partnership

AAU

Antilles brings Chinese ally on board to keep Neuva Sabana work chugging on

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

VMM

'Big tick': Viridis positions for global leadership with Colossus pre-feasibility study

HotCopper Highlights: RIP to Botanix (for now); Droneshield new ATH; Trigg mystery halt

LIS

'Opens doors': Li-S Energy the first Oz company to produce lithium metal foils

ILU

Rare earths stocks surge as Pentagon buys big stake in US REE miner

First 127 Last

Add to My Watchlist

What is My Watchlist?

A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.

One thing that is blatantly obvious within the market depth is...

Top Stories

Trump just dropped a 200% tariff bomb. Here's how to cash in

Week 28 Wrap: Tariff chaos back for some reason; CBA holds strong

Inside the depths of Panasqueira: A legacy carved in rock

Carawine faces Fraser Range JV collapse as IGO moves to scrap partnership

Antilles brings Chinese ally on board to keep Neuva Sabana work chugging on

Listen: HotCopper Wire Podcast 017 – RBA holds the toppings

'Big tick': Viridis positions for global leadership with Colossus pre-feasibility study

HotCopper Highlights: RIP to Botanix (for now); Droneshield new ATH; Trigg mystery halt

'Opens doors': Li-S Energy the first Oz company to produce lithium metal foils

Rare earths stocks surge as Pentagon buys big stake in US REE miner

Featured News