Hi everyoneJust for your consideration, I have a watchlist of 24...

Hi everyone

Just for your consideration, I have a watchlist of 24 lithium companies and on the 4th or 5th April 2022,19 of the 24 picked in price. Since then they have fallen in price, some substatially like LKE.

Given this broad sell off one would consider external factors like:

Fall in lithium price?
In my opinion the price drop in lithium has not been significant enough even with the lock downs in China. Based on the site 'trading economics data' the lithium carbonate price had climbed from 198,500 yuan on 29 Nov 2021, to 497,500 yuan on 25 March 2022. On 2 May may it was 462,500 yuan a drop of 7.03 percent.

Long term outlook is their will be a lithium supply gap which should push prices up.

Market sentiment has changed toward lithium stocks?
Given the 31 March 2022 was the end of the 1st quarter in the USA (3rd quarter in Australia) I would not be surprised if funds and long term investors were resetting their investment strategies over the period from early March to early April, which caused the price spike in the 24 Lithium stocks in my watchlist.

For example: the Nasdaq first quarter was wild. On 4 Jan 2022 it was 15,622 points. 14 March it had dropped to 12,581 points. By 31 March it had recovered to 14,220 points. And by 2 May 2022 it was back down to 12,536 points. Main reason for the Nasdaq swings was fear of pending rising interest rates.

Plus the impact of Russia's invasion of Ukraine had (and has) on the world's energy markets contributed to investors reviewing their oil; gas; and renewables (lithium) investments.

This sell off in the Nasdaq created cash flows that required a home.
Going to cash was a safe option.
Buffet was chasing an oil company which encouraged other investors to consider oil and gas stocks.
I have assumed some of the cash went to Lithium stocks - BUT once the buying pressure ended, unfortunatly prices for lithium stocks have tended to fall back to their equilibrium/ base ie pre the buying pressure in March. Which has been happening since 6 April on. The only disruptor to stop the decline will be if a significant anouncement comes out to push the price back up or at least creates a new base.

This is my present opinion.
GLTAH