becareful investing in this stock......it's a low margin business.
galaxy's input costs in producing lithium carbonate are much, much greater than than it's competitors.....that produce via brine extraction (eg ORE).
if you don't know what i'm talking about....don't invest in Galaxy Resources
Well, the market disagreed with you tody, up 10 % approx.
I don't suppose you have an interest in ORE by any chance ???
why was it up?
good production results? good spodumene grades...>3% at Mt Cattlin? or was it for approval of a plant in china?
Who the hell knows or even cares, fact is, it was up , most probably got to do with plant approval in china almost guananteed, despite the news that Creat resources are exercising an option to aquire nearly 20 % of the company at 80 cents per share !!!
Now I wonder why they would want to do that, could it be that they see a very bright future for this company ????
could you please explain that to a prospective investor?
like i said before, i want to invest in lithium carbonate production as a long term bet.
Don't think you mentioned long term in your last post , not that it matters ?
but my research leads me to believe that GXY will be a low margin business, due to greater input costs....relative to its competitors that get lithium carbonante via brine extraction.
This is true enough, it's been well established that brine production is the cheaper per say, but margins have to be taken into context, eg where is the bigest market likely to be, and what about production costs ,,transport, wages ets ,,, etc...end product at point of distribution costs etc,,
oh...and why did Toyota sign a deal will ORE.
It's petty obvious that ORE are up there with the best, and thats why I hold ORE as well as GXY, however it has been shown lately that Toyota are not always the best judges of best practice..... !!!
btw.....i don't currently hold any shares in any lithium carbonate producers. but i will shortly.....and ORE, in my book, is the long-term pick between GXY and ORE.....due to muuch lower input costs.
That's your choice Mate, and best of luck with it, long term mentioned again,,, some points worth noting, GXY will be in production earlier than ORE, at fixed costs, and situated on the doorstep of the future --> CHINA, so we know what to expect, exposure to the upside, based on probable rising lithium prices, because of supply and demand fundamentals...
Once again I wonder why, and ask yourself why, Creat resources are interested in exercising their option of aquiring 20 % of this company at the present time ???
Best of luck with your investment in ORE ...
Previewed post, and never seem to get the grey areas right, but you get the gist,,,, !!
mate....i'm a novice invester. but i like to do my research.
as i understand it.....toyota came onboard and signed a lithium carbonate supply contract with ORE. nobody here can deny Toyota are at the forefront of hybrid vehicles. so the question beckons.....why did the world's no1 vehicle manufacturer sign a lithium carbonate supply contract with ORE?
Creat....never heard of them. all Creat are doing is assisting GXY convert spodumene into lithium carbonate....and a possible opening to the chinese market. no supply contracts yet.
there is a world of difference between the two....unless i'm missing something.
like i said in my previous post......the input costs in converting spodumene to lithium carbonate are greater than a brine extraction. on world markets brine extractors will work on a greater margin. if lithium carbonate supply exceeds demand ....IMO....GXY will be in a position where their margins are severely compromised.
like i said before....i hold neither stock.....but ORE's higher margin business is the edtermining factor when coming to investing.
all other lithium investors should also read up on how lithium carbonate is produced before deciding on investing...
caveat emptor
Seems like you had your mind made up before posting here, so what exactly is your point..
Have a look at the charts, they're not exactly dissimilar, both prone to market sentiment, regardless of company specific fundamentals or announcements, as is obvious from the ORE chart post toyota announcement when one would have expected this to soar, but alas has followed the general trend..
At the end of the day it's all about making money, and thats why I'm happy to have a foot in both camps at this stage, if at some time in the future, one or the other of these companies is showing more obvious share price strenght, then I will invest accordingly, but at this stage as far as I'm concerned there isn't much difference between them.
You might have other ideas
Like yourself , this is only my oppinion, but I will remain flexable enough to move with it if necessary....
when you compare the market performance of GXY to ORE via charts.....ORE comes out heads and shoulders above GXY!
i wonder why?
GXY has announced a deal with Mitsubishi today so hopefully this will light a fire under the share price.
I plan on holding GXY for long term but when price came down recently bought some more and hope to get rid of the batches I bought at the more expensive price.
Cannot for the life of me understand why positive announcements fail to move this stock.
It has also been moved up to ASX/300.
Hopefully soon get some credit against it on my margin loans
A friend asked me to look into these.
Anyone have an idea of what their target EPS will be once everyhting is up and running? Last i saw was production due late this calender yr, but they have been putting it off for a while now as far as i can tell
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