Yep, global markets are taking a massive hit.
Most been overbought for months.
Many other much stronger companies on the ASX.
Better for investors to sell at a loss, take the hit, consolidate capital, look for a bargain & search for much stronger companies with larger balance sheets, paying dividends with reduced risks of being diluted out or requiring more capital through a CR.
These two posts made more than 8 months ago are a good reference.
https://hotcopper.com.au/posts/39533086/single
https://hotcopper.com.au/posts/42404326/single
The fact is the more lithium companies that collapse the more stronger the remaining lithium companies will become, it's survival of the fittest.
Already producing lithium companies with customers & COH, as bad as the situation is for them, are in a relatively more stronger position to survive any volatility in the market.
The Coronavirus isn't going anywhere, this will affect global markets for months. Supply chains are starting to breakdown as companies & employees are forced in quarantine, this will start forcing the global economy into a recession without any major intervention by Central Banks. The "just in time" economy will start taking the hit.
If economies are going to shrink & the demand for raw materials start to fall, do we really need any new supply of raw materials being pushed onto the market?
LPD is bringing a 3rd source of lithium into an already saturated market.
No financing for P1.
No paying customers.
I'm beginning to think maybe even the DFS ann in May won't be enough to push the SP very high if global markets & economies continue down this path.
To add to that a possible CR?
No wonder investors are selling out.
