More Grief on Monday, page-39

I am always questioning a potential or existing investment in the stock market space so that I am grounded and not 'fall in love'.

There is a difference between FA and TA and the debate will continue. I use both whether top down or bottom up. Consider yourself in the driving seat especially those who took the opportunity earlier on when PLS was just a potential that grew into a mine in such a short period of time. This is the dream of a spec investor who pick a potential early and getting massive cap gains with most liley dividends as that punt matures.

Comparing to its peer ORE GXY, noting out of the ordinary from the chart. They are behaving with the same pattern. All had a great rally from Sept 2017 and phenomenal 5 months that in some ways belong to the very Spec sector type of cap gains. Do you expect valuation to keep expanding at break neck speed without any retracement? Do you prefer to be involved in the Bitcoin type of exponential rally? Using bitcoin as an example of what happens when euphoria dials up to unimaginable expectations and you see the destruction when the last bull has taken up their position. I am just referring to the price mechanics.

Now go have a look at the 2 industry giant in their sector during their time, PDN & LYC. Both were in emerging sectors that were considered almost full proof of future demands. If you just flip their chart you will not be aware that those current LT holders were effectively diluted to death for reasons outside management control, whether operational or macro difficulties.

I am not an alarmist and the last thing I know is the future whether Monday morning opening session or 5 years from today.

So a good question to ask is why is the whole EV sector under such shorting attack? PLS is not unique. GXY, ORE, SYR are all under heavy shorting and some existed for years! Have a look at IGO another serious diversified producer and you see the shorting ratio is similar to the EV sector tier 1 companies. IGO is also indirectly a punt on EV.

Folks here should get over the fact shorting is destroying their wealth when they have been invested for the long term even when it was a Spec and expecting to complete riding the EV revolution to its mature cycle in some 5-10 years from today. Use the shorting to your advantage through hedging to control the emotion.

I am kindly reminded through various conversations with more experienced investors that "Assumptions is the mother of all F'ckups".

From your posting record and assuming you are relatively new to riding a boom, imagine PLS as one of a few hundred great potentials during the boom more than a decade ago and then see which ones has staying power of existence. Study AGO/BCI and can you ever imagine it could be where it is today? BCI besides the big 3 IO producers were the best dividend payer. No one could imagine IO collapsed to the 3 handle but it did!

Sorry a very long winded post but from where you are sitting 3 months of falls in PLS SP is nothing but a blip in your holding period but that is what trend trading is all about. You sacrifice some interim loss of cap gain in order to seek a much larger one and the cycle repeats...