News on ABC just now: China set to import affordable EVs into Australia "With demand for electric vehicles surging in Australia, more affordable models will start coming in from China, currently the world's biggest maker of EVs."
ok - @JPGuru, @Jimmy And your mates. Maybe you think ABC is a leftie and not to be trusted. You on the other hand believe PLS is overpriced, and you give reasons. So, please help me - what do you think the proper value should be? Is it less than the current price - say $3 or below? Tell me how I can lend you my shares - you then sell them for $3.75, later you buy them back for $3 and you make $0.75 - a neat 20% on your risk and I'll be happy if you give me half of what SS would charge.
@everybody else. Of course opinions differ as to what the future will bring. In the short term the day traders have the advantage, but they have to be careful not to be exposed too long else some new event might stuff them up big time. But, for the LT what I see is this:
- governments everywhere are encouraging EVs and lithium mining
- traditional car manufacturers are switching over, and new high tech car manufacturers are starting up and giving the old ones a big shake up
- news almost daily of more reasons why demand for lithium is increasing (not just lefties)
- many say EVs are too expensive - but if you remember Tesla started with a really high performance car that rattled all the traditional high end sports car makers - so many people buy EVs because of their capability and are not daunted by price or recharge time (how many buy a Maserati to cross the Nullarbor?)
- recession coming (ok perhaps) so sales of cars will drop - yes ok - but cars will still be sold, and the EV proportion is increasing, not going down
- all the propaganda about lithium being bad (probably funded by FF companies who are probably s***tting their pants) but ignore that this is a new industry and pretend that the engineers and scientists are dumb and can't fix the startup issues (some years ago Samsung had problems with their batteries catching fire - I have not heard any more about that!)
Say I have 1 mill PLS shares (I don't, if only ..., but some of you do?). That's enough to buy a decent house or apartment in Sydney, but nothing special - just with good views. But if I wait a few years (maybe 5), the SP may well be $10 - and then I would be able to buy a wonderful waterfront house and a nice 40ft yacht. Whilst I am holding the shares I should be able to lend them out - I don't know what the rate is - but if it's 5% then my $3.75mill of shares would earn me $180,000 per year - hey I could live on that, and maybe I can rent that house whilst waiting to buy it! Or I could use the funds to top up.
I wonder if that is what SS is doing. They own a large % of CXO and probably PLS too. Why would they buy if they expect the price to go down? GameStop was hit by a short squeeze when more than its SOI was shorted. Maybe SS is borrowing shares from somebody, and then relending them out at a higher price - just like banks do with regular deposits (the economists call it creating money). What and easy way, virtually risk free, to make money!
Why don't we all lend out our shares - either directly to SS or to someone else and undercut their price? Can we do that? How? (My bot can't answer that).
Of course all that depends on the SP. Some people have said that the fundamentals do not affect the share price - that has to be nonsense. OK - in the short term, yes, but the big swings in the charts and movements to new levels are caused by world events that affect the fundamentals. No change in sentiment without an external cause is going to make a big shift to the trend.
(My holding is insignificantly small, so it is all a big dream, but meanwhile I am accumulating little bits)
Don't get me wrong. I don't want the shares to be shorted. I think it is a despicable practice. I am annoyed that the BEOT can do things we are not allowed to do.
HNY.
PLS Price at posting:
$3.75 Sentiment: Buy Disclosure: Held
(20min delay)