Market Manipulation – shout out to the little guy shareholders of PLS, TAW and AJM.
Ever wondered why on the back of amazing announcements the SP drops or is dropping?
The recent market reshuffle moved TAW and AJM into the ASX 300, and my fund is still locked from allowing me to use my super to buy up…WTF?
Why would they not immediately unlock the stock once the announcement is made, this is time sensitive and I want to buy in while the SP is cheap!
Upon phoning my fund, I am informed that the lock will be lifted once the analysts have reviewed the shuffle in due course. Once again, WTF?.....I call bull#@#$!
I am left wandering why my fund hasn't lifted the block and can only assume they need time to buy back in, or buy time for their shorting mates to get out while they can.
I’ve watched PLS drop from $1.20 to late 80s, and TAW and AJM have dropped as well?
How is this possible on the back of entering the ASX 300/200?; They have amazing off take agreements; endless supply of high grade lithium and they’re ready to produce light years in front of everyone else.
The Auto industry has spoken loud and clear of their EV direction.
At the Geneva motor show, manufacturers debuted their EV models disclosing their product pipeline with time frames!!
There is an ‘arms race of sort’ taking place to dominate the battery market and conglomerates are scrambling to construct gigafactories across the globe.
Car manufacturers see the writing on the wall and are right now locking in supply deals, so they’re not ostracized from the market turn and cut off from supply or held to pay a premium due to market demand.
You have old reports such as this one from Bloomberg that was released back September 2017, which is pretty much on the nose, but is very conservative and only relates to EVs. https://www.bloomberg.com/graphics/2017-lithium-battery-future
There have been some rubbish reports that are absolutely outrageous. Stating catch phrases like over-supply of lithium! Lithium superseded by more energy efficient safer battery...blah blah blah.
What is ironic, is that when you check the veracity of these rubbish reports, there is no basis and often when you check the source which in some cases is from hedge funds, you ask yourself where their vested interest lies - and are left wondering about how loosely the market is regulated.
Remember this –
Market Manipulation is an every-day occurrence.
Funds have billions of dollars at their disposal through varying entities, they’ve been doing the hokey pokey tree shake, taking capital out of emerging companies like PLS, TLS and TAW since 1792!
A fund dumps a few million dollars’ worth of shares on the market, broken up into daily stages and often from differing entities controlled by the same fund manager - just enough to trigger stop loss.
The stock price goes down 1 - 10% value drop in a matter of minutes after each dump.
Traders that use automated systems have a stop loss automatically triggered at varying percentages which causes the sell- off of their shares, causing the SP to dive even more. This leaves the remaining shareholders scratching their heads wondering why a stable company such as PLS,TAW and AJMs SP is dropping, even with all of the amazing announcements and so close to production? The shareholder stresses and comes across a rubbish article that states “Over supply of lithium” or “New battery better than lithium” and worries that the SP could continue to drop and loses confidence in their investment. The shareholder gets cold feet and sells sometime later buying back in later at a higher price… DOH – all those gains just became someone else’s.
After the SP has fallen, the fund buys back in, picking up several million dollars-worth of shares for a very cheap price, twice as many as it first dumped.
The news breaks out that PLS, TAW and AJMs share price is back on the rise, but nothing seems to explain the price change….
As the markets open the next day, traders scramble to buy up PLS, TAW and AJM shares as there is no fundamental reason why the price of the shares are so low, and in the next couple of days the share price rises.
So hold onto your hat, grow a pair. I’m not saying don’t sell your stock to take a profit, I’m saying NEVER sell when you are in the hole with PLS, AJM and TAW, otherwise you are just giving your money away!
TAW Price at posting:
43.0¢ Sentiment: Buy Disclosure: Held
