A much smarter man than me once said: ‘Be fearful when others are greedy, and greedy when others are fearful.’
Now, it’s fair to say that the market is pretty much cacking its daks just now, and our humble company is feeling the pain like pretty much everyone else. What with President Goombah apparently intent on going all MMA on the Chinese, what with Australia’s strategic energy policy climate still a dithering dogs’ brekky, what with the housing market and all who sail in her - more or less the entire domestic economy from the banks down - lately getting the vapours....yep, I’d say Mr Buffet’s description of a ‘fearful market’ applies rather well at the moment. Everywhere you look, a roiling sea of red.
Well. I’m a bit of a tiddler retail investor, myself, and my holdings in this magnificent stock are a mere drop in that ocean. It’s all relative, though, and over the last almost-four years I’ve put quite a chunk of skin - for me - on the table. As no doubt for lots of us, seeing a share price back in the twenties has been...ahem, bracing .
But it’s also been thrilling (to me at least), in terms of a last opportunity to grab a little extra piece of the global energy future at a ludicrous price. Because nothing has changed in the strategic fundamentals that have made this baby the stand-out energy-graphite spec play of the last half decade. Our management - never the SP obsessive type - has just kept on working their bums off, aligning the strategic pillars. Our IP and tech arrangements have now strengthened and filled out, setting us up to be a player 2, even 3 battery generations ahead. The strands of our global production and supply optionalities are ever-fattening and ever-fleshing out. Nachu waits patiently, our planning proceeding and our mining disposition in Tanzania fully locked in and all blue sky. Our directors are - mostly! - throwing more skin into the game.
Funding? Well, here’s the thing. Big money made its call on the future of the planet’s energy half a decade ago. Forget the political paralysis, the sectional argy-bargy, the doom and gloom about a global crash leading to a scared investment retreat. Cash, bonds, the sock under your bed...it’s a stop gap, a pause. The world is awash in money, and ultimately money wants to go to work, to earn. The world also needs energy, will always need it, more and more and more. And non-fossil fuel energy is now cheaper by far than the old coaly, oily, and even gassy stuff. Forget the touchy-feely greenie side of our stock - although that too is dear to my bleeding heart (I have a twelve-year-old, I’d rather like his world to be clean and green and liveable, y’know?) - in the end, the once-in-a-lifetime global disruption that’s nigh upon us will be, like them all, a matter of simple economics.
Our funding will come. Our fundamentals are now beyond merely bankable. They are fiscally irresistible. When markets are scared, it’s time to get greedy. Big money, smart money... knows this better than any. It’s not just a glib saying we wannabe Wolves of Wall Street post with our internet avatars to make us look big n’ swingin’. It’s the driving essence of speculative investment, and it’s how capitalism, at its best, creates brilliant new worlds for our kids.
This isn’t specific investment advice, of course. You make your own calls. You take your own shots. Or not. In the weeks ahead, old holders will sell, newbies will buy in, many will likely sit tight and just keep their fingers crossed. But FWIW, to me, even after a pretty rough few months on the boards at least, this stock - this future global energy stock - remains an absolute cracker.
Whatever you do: do it with your big boy pants on, Magnis brethren all! This is what’s it all about in the specs, this moment right now. The preparatory fuse has been burning quietly, diligently and professionally for a long and prudent time, and I reckon it’s not far away from going off magnificently.
GLA & DYOR as always. Chrs.
MNS Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
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