Shorts finally unwinding?, page-7

  1. 1,340 Posts.
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    I hope its not the new dot com bubble (did you say boom?), there were only a few survivors from that. Althougth if it is a bubble (which it is likely becoming) I see Orocobre as one player to come out the other side. It is one of only two lithium producers on the ASX that has turned a profit.

    I prefer the sound of your last sentence. Li a commodity seeing a massive surge in demand due to changing technology and consumer preferences (move to green energy), and athough the element itself is abundant, one of only three elements created in the big bang forming the earliest stars in our universe and one of the most common elements found on earth it is rare to find large concentrated quantities economically worthy of extraction. Supply is limited to a few players and new entrants face various barriers to entry (incl. high capital costs, lack of technological know-how).

    If Orocobre can reach nameplate and expand production (with all the knowledge it has garnered from Phase I this will occur faster and with less ramp up problems) it is well placed to benefit from the changing energy dynamics around the world in which lithium is a key commodity.

    I have been here since 2014 and have always completely believed in the production process (although i'm fairly ignorant of it) and see expansion as given. Could any more enlightened posters offer any insight into the production process at ORE? Is it sound and how confident are you of nameplate being achieved? @niu

    To your point on Short-selling, it is just the opposite of going long. No more need to understand the broader market than a long (though one that invests in the stock market would benefit from a broad understanding of such things as macro-economic, social, political, and technological trends). Executing a short-trade may be slightly more difficult due to it requiring specific accounts that often require some hurdles to be jumped through, it is essentially just as "simple" as buying shares in terms of analysis. Shorters should be wary of the risks (with potential for infinite losses)
 
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