Post by
Sogosohubidu201 on Mar 04, 2019 10:40am
KBLT CEO predicts the rebound of cobalt price this year
https://www.youtube.com/watch?v=VMxWRzQuILY&feature=youtu.be
CEO of Cobalt 27 predicts the rebound of cobalt price with the current cobalt price of $15 per pound ($33,000 per tonne) and rise to $25 per pound ($55,000 per tonne) for the remaining of this year. He thinks that cobalt price ceiling is around $30 per pound ($66,000 per tonne) near term.
Comment by
SAM1492 on Mar 04, 2019 12:05pm
With this analysis if correct where do you see the stock at years end? There has been so much negetavie news it’s food to see a light at the end of this dark tunnel...
Comment by
Lech1988 on Mar 04, 2019 12:42pm
KAT is dead money this year. If you have a 2-3 year investment horizon and can stomach the vol these levels are very very attractive to get in at. Without Cobalt the company simply is not profitable. Only brightside is that Glencore will hopefully be off-taking the cobalt at higher prices next year.
Comment by
johnny54 on Mar 04, 2019 2:00pm
to a certian degree one would have to think that the cobalt being stored has to somewhat already be weighed into SP as future earnings No? i dont believe just because its being stored that the market justs acts as if it is non existent?
Comment by
Sogosohubidu201 on Mar 04, 2019 2:11pm
No, it is not priced in in my view. Your assumption will be correct if we have efficient maket for KAT and if we have institutional investors. We don't. We have mainly retail investors and traders who take the float shares. Many of them would buy if it rises and sells if it drops regardless of future prospects.
Comment by
johnny54 on Mar 04, 2019 4:25pm
so if this is the case, how does us achieving the levels and targets projected change the fact that those are the players we have for this stock?
Comment by
Lech1988 on Mar 05, 2019 3:42am
A stock that is generating large and sustainable free cashflow is much harder to ignore.
Comment by
Sogosohubidu201 on Mar 05, 2019 9:51am
Institutional investors will come and KAT share price will reflect its intrinsic value (i.e. $17 billions USD NPV including sunk costs) when we enter next year: (1) KAT to generate huge amount of free cash flow and earnings, (2) share price above $3 to remove KAT from penny stock status, (3) KAT to pay dividend, possibly from 2021.
Comment by
Lech1988 on Mar 05, 2019 1:28pm
No chance KAT pays a dividend while there is several billion dollars of debt outstanding to Glencore...
Comment by
bobsacramento on Mar 05, 2019 4:29pm
How much of this for instance can be regulated by the TSX? If the company is not working in the interest of all of its shareholders don’t they risk being penalized by the TSX?