Freehold
Regular
No ones winding up LTR holders here I have not posted to their threads and I not suggesting anyone else should. Merely pointing out facts.
Heres another fact ...
The AVZ share price really "started to take off" when several AVZ HC posters (incl myself) noticed and started to point out the obvious discrepancy in mcap between LTR and AVZ (that was after LTR spun off off their Julimar prospect). Once Julimar was offloaded we could see the pure valuation on lithium assets in isolation.
LTR had a large Mcap $3.5B at the time and AVZ was circa $1.2b from memory?. So comparisons of resource/grade location/project stage suddenly became transparent between LTR and AVZ's. It was clear that LTR at the time was either massively overvalued or conversely was AVZ was massively undervalued or both. As it turns out AVZ was massively undervalued and started to rerate upwards ( ..and still is relatively IMHO). LTR on the other hand by and large stayed put for the most part indicating for the time being it was fully valued. Both companies will prosper in the years ahead. AVZ IMHO will prosper much more given scale and grade over time. Thats just my opinion. If the market determines that LTR is undervalued it will rise the opposite if market perceives overvalue at a point in time. Sometimes the market can't see something glaringly obvious but eventually the market will see it and will adjust. If LTR mcap climbs/fall due to info that I and others pointed out then so be it... it would have happened sooner or later anyway as the market gets it right eventually when someone realises.
So peers comparisons are a absolutely fundamental and part of key part of trading investing on the market. Its how the market adjusts, readjusts and balances valuation over time to provide fair value.
I, along with others, posted my views to both AVZ/LTR and threads at the time. Of course the LTR party faithful did not like to hear it, some were touting LTR at the time being undervalued citing $10b being fair. Some open minded holders I suspect evaluated for themselves and may have switched to the obvious undervalued and made decent $$ out of it.
If a stock valuation cannot standup to close scrutiny such as this then it is clearly not valued correctly. Its every investors duty to constantly reassess the valuation of stocks they own. If they don't then they are at risk lose their capital. No ones fault except the investor themselves. The market is always right in the end whether it is me or anyone else that points it out irregularities.
Hope that clears up my views on LTR. LTR is our closest peer and should be discussed ...along with many others in the sector of similar ilk.
PS: What I vehemently disagree with is constantly trolling a thread over and over weeks and months in a bloodminded manner bating the posters for entertainment .... When critiquing a peer I don't own I say my view backed up with relevant research where I can, answer a few queries if there are any from holders, then stop posting to that thread. As you will see when I posted to LTR some months ago. Currently the AVZ vs LTR valuation is obviously more equitable now ... Although I still believe AVZ will still creep ahead over the short to mid term given its resource quality and production size plans. AVZ's peers companies will evolve away from the smaller players LTR PLS to be more akin to the SQM's and Albemarle's of the world purely by scale output.
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