He has a point. The problem that I see is the market for lithium is opaque. unlike other commodities where you can find the current prices at any given day, that isnt the case for Lithium.
As we see with Gold, Oil, iron, etc, every movement in price is reflected in SP of coresponding shares. There is a positive correlation . The absence of that in the lithium market means that investors can only wait for a company to post financial results.
That is why the SP will not reflect the companys true value until there is a clearer picture of its revenue and profitabilty. Announcements of BOA and DSOs help, but those deals dont specify how much they're worth either. Financing and permit will give a boost as well, but that too wont help it realise its true value.
So the best thing to do is wait until the company is able post results which unfortunately, may be some way off.
Would be interested to see what you guys think. thats just my observation, so its likely wrong.
He has a point. The problem that I see is the market for lithium...
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Last
$4.18 |
Change
0.120(2.96%) |
Mkt cap ! $12.58B | |||
| Open | High | Low | Value | Volume |
| $4.13 | $4.20 | $4.11 | $86.61M | 20.81M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 11 | 1408666 | $4.18 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $4.19 | 165878 | 22 |
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| Last trade - 16.10pm 03/05/2024 (20 minute delay) ? |
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Last
$4.18 |
Change
0.120 ( 3.20 %) |
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| Open | High | Low | Volume | ||
| $4.12 | $4.20 | $4.12 | 4580071 | ||
| Last updated 15.59pm 03/05/2024 ? | |||||
| PLS (ASX) Chart |