https://www.fastmarkets.com/insights/brazils-sigma-lithium-looking-at-m-a-proposals-after-first-shipmentsWell worth a read, interesting article from Fastmarkets (who do know what they're talking about I think it is safe to say). Sigma looking at possible M&A also now it is into production. Much like Liontown, why would Albermarle and Gina Rinehart be looking to acquire this at over $6 billion if lithium were going nowhere as some would have us believe?
This is all fear mongering while the market is down due to the drop in lithium price, much of which is totally and undeniably manipulated by China at this stage. Once gigafactories start operations across the world and there are downstream refining capabilities outside of China, things will change dramatically imo. The price did also reach potentially unsustainable levels late last year which does not help with overall adoption of EVs globally.
I mean, just look at the % drop in our market cap over the year vs the % drop in lithium price. Oh what's that? They're virtually identical? Funny that hey....
While there is bearish sentiment due to the steep drop in price and after such a wild run, certain market participants will absolutely use this to their advantage, it's the hangover after the party, but that doesn't last much longer. It's a hedge for them in uncertain times, super funds will be shorting us right now, it's not just some perceived evil menace, funds and instos will likely have both long and short positions. They make money both ways, that's their job. They can lend out their long holdings when things are going down in order to generate income also, then accumulate more and develop a greater holding once those borrowing have done their work to drop the SP for when the prices rebound and they profit even more again.
Particularly worth noting near the end of the Fastmarkets article:
Article from St**kh*ad also about why PLS is now the most shorted stock on the ASX to give further clarity on what's going on:
Prices have stabilised since the large drop earlier in the year, but sentiment is still low, and while this is the case these market participants will do what they do to profit from that. However, as we as a company prove ourselves in production in terms of revenue and especially productions costs and ASIC, we will start to rerate from this low point imo.
As lithium prices head back upwards gradually in time if this deficit is indeed true (I cannot believe it will not be), then our MC will also be lifted with it, just as it has been brought down by it.
The timing with the actions from our board, departure of Lynch, and various corporate confusion as not helped us one bit and the wolves have pounced on this, but the numbers will speak for themselves soon enough. No more FUD and conjecture, the quarterlies, especially the December one, will speak for themselves, dropping into a rebounding lithium market.
Of course it would have been great to sell all at 35c and buy in now, but nobody has a crystal ball and nobody gets it right every time. This is still a solid buy with huge potential, babys being thrown out with the bath water and all that. We are being perceived in the same light as CXO and LKE, when we are nothing like. Could almost be a set up for a short squeeze come some big news or great quarterly hey....
Just my opinions obviously, not financial advice.
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