OTCQX:AVLIF - Post by User
Post by
100KInvestorEHon May 16, 2018 3:35pm
111 Views
Post# 28041433
China's Tianqi nears deal to buy stake in Chile's SQM
China's Tianqi nears deal to buy stake in Chile's SQMMany of the other lithium boards I follow are commenting on this article and I wanted to share it here.
https://www.businessinsider.com/r-exclusive-chinas-tianqi-nears-deal-to-buy-stake-in-chiles-sqm---sources-2018-5
By SQM selling (potentially, this is not a done deal) at a premium of 22% than it contradicts the MS report that there will be an oversupply in lithium. I can't think of a good reason, other than control of supply, that would support this price premium. I am sure we will see a revised statement soon.
If AAL states a 2.6- 2.8M tonnes resource than the price of this stock with fly to $2.
With this promising news and AAL management about to announce the updated resource we should expect a SP jump. Three analyst all agree that $2 is the right target price.
JMHO