RE:RE:looks like huge sell off...Agree...
it got short term overbought and each individual must decide whether this is a trading vehicle or investment.
From my perspective, if you look at the NPVs of the handful of companies that are best positioned in the sector, then the stock prices have just now gotten out of the starting blocks. We are still in the infancy of the growth that the sector is going to experience.
You can ultimately wind up with several companies in this space that have billion dollar plus market caps. They are still trading for peanuts right now.
These are real assets that will become increasingly valuable. Large expansion of the resource over time.
I think what we've seen in the past couple of months, where we began to get breakouts to the upside in a number of graphite stocks -- that is the smart money, those early to the party, establishing positions.
Going forward two things are going to drive further stock appreciation: (1) the individual companies are going to continue to progress through their development plans. Greater values will be placed on the assets as companies expand resources and work through feasibility studies; and (2) you will start to hear about off-take agreements. This will be the proof that investors need that the assets are going to be monetized in a huge way.
More and more, the entire sector will be the subject of news and retail investors will eventually climb on board in a major way.
You've had such a bear market in the resource space, that it is difficult for some to look down the road. People are still quick to take profits. I would suggest that those who are selling graphite stocks on this initial pop, are like those who drive down the highway by looking at the hood ornament on the automobile. You've got to look a good deal farther down the road to have a clear picture of what is ahead.
If you sell today, you're selling dollar bills for pennies. I have been building positions in Energizer, Graphite One, Northern Graphite and Mason. Wouldn't even consider selling a share at these valuations.