OTCQX:NTTHF - Post by User
Post by
LithiumNPVon May 08, 2019 10:50pm
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Post# 29727188
Ecomonics of Oversupply Why Stocks Don't Move When You Want
Ecomonics of Oversupply Why Stocks Don't Move When You Want Since the last 4 reports show us there is a massive oversupply of lithium to the markets till 2025, getting excited about a particular company is not going to solve the problem. You're living in your emotions, not reality.
The demand for lithium is starting from such a low base, even a 50% increase in demand is still not that much. You have several years out before getting excited before the dead money takes a turn like Denison Mines or Cameco where money goes to die year after year. The oversupply problem for lithium is much worse than for uranium.
Since LIT was down for 5 years in a row, and NLC and LIT are only down this time 1 year and 4 months, it is not unreasonable to expect NLC and LIT to at least remain down through 2019 and 2020, but likely it will be even longer than that because of that massive overhand of oversupply till 2025.
Let's say the price remains depressed till the end of 2020 that's 3 down years from the start of the decline Jan. 2018. That's what we are looking at. Reality is hard stomache sometimes.