More non-sense, that's probably affecting the lithium valuations right now. I'm referring to the analysis from Paul Young of Deutsche Bank not about PLS. It's really sad coming from DB to allow such mis-information to spread, since their initial lithium report was the most accurate of all the brokers. And yes, one Australian analyst, seems to drive the views of entire ASX, it's really sad, to be honest.
Chris Ellison’s Mineral Resources could emerge as one of the biggest lithium producers in the months ahead as the contractor turned iron ore miner shapes as a major supplier to the booming electric vehicle and battery industries.
Shares in MinRes soared by more than 13 per cent yesterday, taking market capitalisation well past the $2 billion mark, after Deutsche Bank analyst Paul Young published a research note describing MinRes’s Wodgina lithium project as “a monster”.
Wodgina, bought by MinRes for an undisclosed sum last year, has kept a low profile compared with other Australian lithium projects.
But Mr Young followed his recent site visit to Wodgina by flagging that the project could generate $180 million in earnings before interest, taxation, depreciation and amortisation in the coming financial year while generating an internal rate of return of more than 200 per cent.
He said the output from Wodgina, combined with production from MinRes’s Mount Marion lithium mine near Kalgoorlie, would help MinRes overtake US heavyweight Albemarle as the largest lithium producer.
Deustche Bank was among the first major investment banks to flag the potential of the lithium sector more than a year ago, helping spark the investor frenzy around a series of explorers and developers.
While Mr Young’s positive report on Wodgina prompted him to lift his price target for MinRes from $10.80 a share to $12, he did warn that the volume of output from Wodgina could exacerbate oversupply concerns in the lithium sector and drive prices lower.
Rich lister Chris Ellison is the biggest shareholder in MinRes. His 12.3 per cent stake is worth more than $260m at yesterday’s closing price.
The bullish tone of the Deutsche Bank report will add to views in the market that MinRes scored a bargain when it bought Wodgina from Global Advanced Metals last year. GAM had previously mined tantalum at the project but had never fully assessed the lithium potential, while MinRes was already working at Atlas Iron’s iron ore mine at Wodgina and was able to move existing equipment straight over to the lithium project.
It also picked up historical offtake rights and a royalty from Pilbara Minerals’ neighbouring Pilgangoora lithium project, and eventually leveraged those rights into an 8 per cent stake in the company.
The investor excitement around MinRes also reflected the news first flagged by
The Australian that Pilbara had secured $US100m ($132.3m) in bond financing for the construction of Pilgangoora.
Pilbara confirmed the raising yesterday. Managing director Ken Brinsden described the support as “a strong endorsement” of Pilgangoora.
Pilbara shares closed 1c higher at 39c.
Let's look at Paul Young's history, and even analysis from the past:
https://www.tipranks.com/analysts/paul-young
Analyst Profile
Paul Young
Deutsche Bank
Wall Street Analyst
Ranked #3,236 out of 4,567 Analysts on TipRanks(#7,313 out of 10,582 overall experts)
Paul Young's Performance
Success
Rate
25%
1 out of
4 ratings were successful
Average
Return
-0.9%
Average return per rating
Each rating is measured over a 2 Years 1 Year 3 Months 1 Month period, and compared to No Benchmark S&P 500 Sector .
Stock Rating Distributio
- 66.7%Buy Ratings
33.3%Hold Ratings
0.0%Sell Ratings
6
Ratings
Additional Information
Main Sector: Basic Materials
Geo Coverage:
USA
Best Rating
- Stock: Teck Resources (TECK)
- Rating Type: Buy
- Dates: Oct 07, 2016 - Feb 16, 2017
- Gain: +21.2%
Paul Young'sStock Coverage
Follow
4 Investors Following
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TECKTeck Resources Limited |
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BHPBHP Billiton Ltd |
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AWCMYAlumina Limited |
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2.
Arbitration Panel Orders Deutsche Bank To Pay $5.8M
By
Bailey Somers
Law360, New York (September 8, 2006, 12:00 AM EDT) --
A National Association of Securities Dealers arbitration panel has ordered Deutsche Bank to pay $5.8 million to three brothers who accused the bank of investing their money in high-risk stocks without their consent.
Charles, John and Robert Switzer accused the bank of allowing a
Deutsche Bank broker to take advantage of their inexperience as investors and push them into investing $8 million each in illiquid alternative funds.
The NASD panel sided with the brothers, ruling that Paul Young, their Deutsche Bank investment advisor, “was negligent and breached the duty of care and loyalty owed by him” to his clients.
Deutsche Bank said it plans to appeal the ruling.
The Switzer’s investment saga began nearly 10 years ago, when their family business,
Lamar Advertising Co., went public, and the brothers became millionaires.
The company’s initial public offering had been underwritten in part by Alex. Brown, an investment bank that later was later absorbed by Deutsche Bank. After the IPO, the brothers signed on as brokerage clients with the bank.
Paul Young, the Alex. Brown broker that worked with the brothers, allegedly pushed them into making highly complicated investments that they did not fully understand.
These investments included collateralized debt-obligation funds, a venture capital fund and several private equity funds, all of which ended up draining the Switzer finances.
Attorneys for the brothers estimated that they incurred losses anywhere between $3 million and $10 million.
Deutsche Bank is not the only firm that has been dealt a blow for allegedly ignoring investors’ objectives.
https://www.law360.com/articles/9829/arbitration-panel-orders-deutsche-bank-to-pay-5-8m
