From this chart above, we can see that Lithium Carbonate price started climbing up in early 2021.
Then I wanted to see the performance of the share prices of Albemarle, Livent, Allkem, and Pilbara starting early 2021. So I got the chart below:
I couldn't believe what I saw. I thought there was something wrong; surely Albemarle and Livent couldn't be that bad compared to Allkem or/and Pilbara.
So I got the chart below comparing Albemarle with Livent only:
The result is the same. After 3 years, the share prices of Albemarle and Livent have made a negative growth, while Allkem has made 110% growth and Pilbara 435% growth. Is this right? I really find it hard to believe. But graphs don't lie, do they?
Wow! Here we have the undeniable evidence (if not proof) that being listed in NYSE has no advantage at all. If anything the evidence shows a big disadvantage; that it is much more volatile for being listed in NYSE. That is probably just as expected considering most institutions who short sell are based in the US.
So this evidence stands as a reminder to those of you who will vote Yes to the merger, that you have to be ready to have a much higher level of volatility with the NewCo shares being listed in NYSE.
(On top of that, there is an added volatility with the exchange rate!)
It is just something to think about before making that crucial decision.
