With the share price in short term free fall, I think this is one of those moments when you ask yourself whether you are an investor or trader. Personally I think unless you have enough money to distort the market you are pretty much up against it as a trader (at least short term).
As an investor I note that Toyota has invested $282 million in ORE at a 17% premium to its 30 day vwap (and more then double the price of only a few months ago) -taking its holding to around 15% of the company.
If a company like Toyota see the need to lock in its interest in Lithium (at a significant premium price) it indicates to me that their judgement is that the increases in Lithium prices we are seeing are likely to continue into the medium term future. I prefer to value the judgement of Toyota to those who have predicted the market would by now be over supplied.
I find the GXY story both in terms of meeting targets (and hence management performance) and outlook regarding future production compelling and if the price continues to fall significantly will look to increase holding. (I was fortunate to invest at a much lower share price and GXY (followed by ORE) is already my highest shareholding - otherwise I would top up now)
GXY Price at posting:
$3.45 Sentiment: Buy Disclosure: Held
