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16/07/24
20:39
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Originally posted by jjsbuy:
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I have not been on HC for a bit as there was not much to say but I think there now is. Following the failed assassination of Donald Trump all the markets and bookies are now saying Trump has the election wrapped up. Maybe the 7 to 1 odds in his betting favour will come true or maybe not but with Trump comes two things: The first is the very real likelihood he will impose 60% tariffs on China. That is what he is saying. His new future VP apparently is also saying it. Think about that for a moment, or maybe much longer. There will be an action and counteraction. China to date has tended to tit for tat along similar lines. Imagine the imposition of tariffs by either or both parties leading to an increase of graphite of 60%? Will it play out that way I do not know but there will certainly be a trade war and there is a very good possibility even probability that graphite will be in the mix. There are unknowns and other considerations. For instance a Trump administration will not be necessarily be pro EV or give a a care about clean energy as part of his DNA. In fact he has said he will go hard on production of oil and gas and building new pipelines. But he will also want to see US auto makers be competitive in the EV space. So here team is a not very trick question? Who has just announced they will fund Trumps campaign to the tune os a staggering US$45 million a month? The answer: Elon Musk. Who has just returned Trumps access to twitter aka X? Elon Musk. Who owns Tesla? Elon Musk! Secondly: Who will look after a mate (Elon) who has spent hundreds of millions on his re-election? Donald Trump Now who is poised to sell graphite to Musk? SYR. Who else is there who can do it outside of China? Almost no-one. Do I know how this very messy trade war may play out exactly? No! Is there a very.... very high probability it will be good for the price of graphite? Shit yeah! I really welcome constructive critical comment on this post!! I don't know what I don't know but I am thinking the tide is turning and may be dramatic.
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We’re trading at multiples below enterprise value in a one player (who else apart from Syrah is there?) IRA compliant ex-China - natural graphite game. Plenty of competing Lithium suppliers but zero competition at scale on the ex China natural graphite side = high demand even if EV adoption ex China remains sluggish. Many moving parts with Trump and his anti-China narrative/tarrifs etc Yes - Trump has also been publicly critical of EV’s BUT the world is changing and quickly - Elon providing funding for his re-election can only be a good thing for Tesla and it’s pro-Americanism. I’m expecting a major review of the Inflation Reduction Act if (once…) he gets into office. Syrah is in somewhat of a unique position being geographically and economically positioned between East and West (and the West has no Graphite) which adds to our value. Funding is a non issue as Aus Super could easily purchase the asset outright ($315 Billion under management). I still fully believe Aus Super holds the keys to Syrahs future possibly in partnership with another entity. Cheers DYOR IMO
Originally posted by jjsbuy:
↑
I have not been on HC for a bit as there was not much to say but I think there now is. Following the failed assassination of Donald Trump all the markets and bookies are now saying Trump has the election wrapped up. Maybe the 7 to 1 odds in his betting favour will come true or maybe not but with Trump comes two things: The first is the very real likelihood he will impose 60% tariffs on China. That is what he is saying. His new future VP apparently is also saying it. Think about that for a moment, or maybe much longer. There will be an action and counteraction. China to date has tended to tit for tat along similar lines. Imagine the imposition of tariffs by either or both parties leading to an increase of graphite of 60%? Will it play out that way I do not know but there will certainly be a trade war and there is a very good possibility even probability that graphite will be in the mix. There are unknowns and other considerations. For instance a Trump administration will not be necessarily be pro EV or give a a care about clean energy as part of his DNA. In fact he has said he will go hard on production of oil and gas and building new pipelines. But he will also want to see US auto makers be competitive in the EV space. So here team is a not very trick question? Who has just announced they will fund Trumps campaign to the tune os a staggering US$45 million a month? The answer: Elon Musk. Who has just returned Trumps access to twitter aka X? Elon Musk. Who owns Tesla? Elon Musk! Secondly: Who will look after a mate (Elon) who has spent hundreds of millions on his re-election? Donald Trump Now who is poised to sell graphite to Musk? SYR. Who else is there who can do it outside of China? Almost no-one. Do I know how this very messy trade war may play out exactly? No! Is there a very.... very high probability it will be good for the price of graphite? Shit yeah! I really welcome constructive critical comment on this post!! I don't know what I don't know but I am thinking the tide is turning and may be dramatic.
Expand