LRS General Discussion, page-5221

From NAB Trade. Interesting to see us mentioned alongside the multi billion dollar explorers.

https://www.nabtrade.com.au/investor/insights/latest-news/news/2022/04/three_lithium_stocks


In the Marcus Today newsletter, it seems that I have only to mention a stock and it skyrockets such is the demand for recommendations. Last week I recommended a South American wannabe Latin Resources (LRS) as a buy at 9.5c and blow me down, but they are now trading at 19c. Anyone would think I am a genius. Sorry to break it to you but I am far from a genius. It is just that it has gotten too easy. Anything with lithium exposure is in vogue. And it is not just in lithium - it has spilled over into rare earths (not that rare really), and battery materials more broadly. It really is shooting fish in a barrel. There are some seriously good returns currently. As there were in the Dot Com boom and the John Howard resource boom that effectively paid off the country’s debt. We won’t get into the now $1 trillion national debt in a rising interest rate environment, we can contemplate that another day.

For the time being it is white powder fever. It doesn’t matter whether it is spodumeme or brine. Doesn’t even matter if they are years away from production and prices will be very different to what they are now. It just doesn’t matter. If it has a US or Canadian focus even better. If it is near production, better still. If it is in production, make hay.

So, the question is when is enough? When does the run finish? When does the free money end? When will reality bite?

Bad news I am afraid, I have no idea. But what I do know is, it will end. Something will happen and the green push will get overextended and companies with silly market valuations will come undone. In the meantime, hang on and enjoy the ride. Some traders will use stop losses. That may work, some will take money off the table and sell into strength as stuff rises. That is my own strategy. Every boom has a bust. Every bubble bursts. This one still has legs. One problem has been in taking profits, the stocks just keep on charging.

So, if you are feeling that you have missed out, do not despair, FOMO is rife I know but there are ways to get involved still. Of course, you could just throw money at some of the runners and riders - LTR, CXO, SYA, PLS, AGY, LRS spring to mind. There is money to be made here. Anything that has a good name is also in demand. Much like my betting history in the Melbourne Cup. ‘Australian Lithium Something’. Must be a sign. Sometimes you get lucky, sometimes not.