Nemaska Lithium Inc NMKEF

RE:So many bids, but nothing moves

[springinhetveld]

I though I understood the huge selling at $1. But I do not understand the selling below $1.

At $1 my guess was that there are a number of brokers that are participating in the "done deal" and that they are selling the share. They can take their 2% or so commission and maybe keep some of the shares LT. So an instant 2% earning. At $0.99 this becomes only 1% earning which I guess is still something they may like, after all a total of 280m shares (+15% optional) or so are comming onto the market in this deal (and an other 80m to an investor). If as a broker you can sell (or is it dump?) 10m shares at $1 for a 2% comission fee that earns you a nice $200k. At $0.99 it still earns you $100k. Easy money. However, at $0.98 the earning stops.... Unless the broker earns more then 2% on the trade....

As for a reasonable SP in the (near) future, I guess time will tell. With PLS.AX and AJM.AX it took a couple of months until the SP moved up after the last step of the financing. But it never dropped below the last financing step. So I expect something similar to happen here.

According to my spreadsheet calculations a fair SP would be around $4 to $5 once they are in full production. But already next year the mine should be fuly operational and a hard rock mine is really not that hard to build. That should already make the company worth about $2. So between now and the end of 2019 I expect the SP to double. And once the hydroxide plant is operational we may expect an other doubling.

Now on the short term the traders/shorters and what  not can do with the SP what they want and it may drop down. But within 18 months this will be near $2 IMHO.