Plenty of companies see drops of more than 50% in a day. It's not unprecedented in all of history.
On the ASX it also happens that if a share price changes too extremely and too quickly, a price query will be issued. That obviously wasn't necessary for AGY because they had indeed given an obvious price sensitive announcement to the market which explains why there was a large selloff. If that drop had occurred without any news, absolutely, the ASX would have issued a price query.
The remarkable thing is not the sudden drop (it's remarkable it still hasn't dropped further since the company's admission that their attempts to get the plant working weren't worth the expense), but keeping the price so high for so long was a remarkable effort on the price of JZ.
It's amazing to see people criticising JZ for not hyping up the company enough! That's pretty much all he has done for years. He did a pretty good job of making a disastrous company look promising, but at this point there's only so much glitter you can stick to a turd. What would a company promotion look like now?
-company sitting in indefinite hibernation
-hoping for lithium prices to skyrocket at some point in the future so we can successfully do a CR to raise funds to continue attempts at making lithium at commercial scale, after the best part of a decade of trying and failing, with no immediate avenues of development to pursue as of when we shut down
-at current prices we admit that even if our plant did work it wouldn't be commercially viable
-we need hundreds of millions of dollars (multiples of our market cap) to build our expansion, which is based on a design which so far doesn't work, in the hope that if it works, it will be efficient enough to produce at marginally less than the market price
-if we do by some miracle see a massive rally in the commodity price and get the pilot plant working and manage to raise the funds, it will take years to build the plant by which time the rally will be over and the rest of the industry will have spent years progressing in terms of size, efficiency and lowered production cost, reducing future prices.
It really seems like reality hasn't sunk in yet.
AGY Price at posting:
4.0¢ Sentiment: Sell Disclosure: Not Held
