PLS has a MC of A$6b despite producing a A$51m loss for FY21. It...

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JabraD

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08/10/21

21:21

Post #: 56673339
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Originally posted by Andyrooo: ↑

After 3 ASX Ann.s and strong overseas lead in from American Lithium stocks, you'd expect a strong opening this morning.

However, China resumed share trading today. Leading Lithium sector stocks like Tianqi and Ganfeng, were down 6% and 3.5% respectively, leading into the lunchbreak. It was when China opened that the PLS share price turned down today.

Tianqi and Ganfeng resumed trading up at the ASX close, which resulted in a slight uptick in the PLS share price in the closing auction.

Tianqi finished down 4.85% and Ganfeng down 3.71%. They are both bellwethers for the Lithium Sector.

They are both down from their ATHs by about 33%. If PLS was, the share price would be at $1.75.

Tianqi is still up 500% from its 52wk low. It has a large investment in SQM which has gone nowhere.

Ganfeng's biggest input to its recent profitability has been marking up its unrealised capital gains on its acquisitions, such as its PLS investment. Eventually reality has to hit home with both.

PLS has a MC of A$6b despite producing a A$51m loss for FY21. It would need to meet production estimates and current pricing to achieve a A$200m NPAT for FY22. Even then that would represent a P/E of 30.

I know of other rockcrushers who produce much higher FCF, yet are valued 1/5th of PLS ... and that's with Spodumene at peak pricing.

You'll notice Chartists like to refer to their "art" as "Technical Analysis". Perhaps Palmists, Tea Leaf Readers, Crystal Ball Readers, Astrologists and Tarot Card Readers should do the same? Its all entertainment and nothing more ... but when some start to palm it off as meaningful, its important that they should be checked.

Years ago the King Instos and Fundies summoned their Quants to see how they could screw people more. They invented Charting. They used jargon so obscure that most observers would just relent and obey. That's all it is. Shares go up or down. If they do as promised they return as the anointed one. If they don't you never hear from them.

We live in a time of financial delusion. True valuation principles are rarely observed.

Who owns and operates HC? Do people earn hearts with GAs or are they "arranged" by those in control here? They blow in and say they own and are sitting on profits ... and yet their sentiment and position always say "none" and "not held". Oh well, mistakes DO happen ... sometimes.

AIMO of course Anna.

Someone said the PLS share price will be $4.00 by the end of this year. Another said $8.50. Woo hoo!

Expand

PLS has a MC of A$6b despite producing a A$51m loss for FY21. It would need to meet production estimates and current pricing to achieve a A$200m NPAT for FY22. Even then that would represent a P/E of 30.I know of other rockcrushers who produce much higher FCF, yet are valued 1/5th of PLS ... and that's with Spodumene at peak pricing.

couldn’t have said it better myself

PLS Price at posting: $1.97 Sentiment: Sell Disclosure: Not Held
1 Upvote

0 Great analysis

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(20min delay)
Last $3.30		Change 0.025(0.76%)		Mkt cap ! $9.922B

Open	High	Low	Value	Volume
$3.20	$3.31	$3.20	$37.09M	11.35M

Buyers (Bids)

No.	Vol.	Price($)
85	299344	$3.29

Sellers (Offers)

Price($)	Vol.	No.
$3.30	183887	47

View Market Depth

No.	Vol.	Price($)
82	298537	3.290
56	228388	3.280
19	217990	3.270
16	255543	3.260
18	100325	3.250

Price($)	Vol.	No.
3.300	178172	44
3.310	253167	27
3.320	342933	41
3.330	187118	46
3.340	165850	25

Last trade - 15.02pm 01/10/2024 (20 minute delay)

PLS (ASX) Chart

PLS has a MC of A$6b despite producing a A$51m loss for FY21. It...

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Failure to report prompts ASX to impose multiple company suspensions

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Coda Minerals (ASX:COD) enters rights issue to further exploration in South Australia

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PLS has a MC of A$6b despite producing a A$51m loss for FY21. It...

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Failure to report prompts ASX to impose multiple company suspensions

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