To Hold or to Sell, page-19

Hi Dusty,

...I have a fairly large shareholding in AMAL with an average price just under A$ 0.30...

If the above is true, and by large you mean ~2mil shares, I mention 2mil shares as a guide because that is how much I have invested in A40 and I don't count the ~200k shares I received (10% bonus after the merger)...those I plan to sell after Stage 3 is @ nameplate and then treat myself to something nice.

So, anyone with a large holding and who is not in desperate need of selling, why would you sell @ the absolute bottom?

* If selling thinking you'll get more for your money at a lower price...very risky...liquidating a large holding during weeks like these will undoubtedly push down price lower and then when you want to buy that same large amount of shares, what's likely to happen to the SP?
This tactic is only suitable for holders with smaller parcels.

* If you think EV's and Storage will progress very slowly going forward, despite all available data and money commitments by various Governments and a large number of Multinationals pointing to a very strong uptrend...then better sell.

* If you think there is a risk of serious oversupply of Li and that those Companies/PPL who have published those claims  don't have ulterior motives...then better sell...but if you think those rumours have done their job and have pushed the Li price and the SP of Li miners down far enough and has achieved a few things -

1. Has created very good entry points into the top 4 Li Producers - 
2. Has put a very negative sentiment into the sector right before there will be an enormous increase in demand, but the investment into new projects has all but dried up.
3. The scramble for quality Li concentrate will be fierce., as it will take some time for new supply to reach the market.
4. Hat off to the Chinese - they are playing this with such skills that I can't help but be very impressed.
 
* A40 has hit some small roadblocks and suddenly it's the end of the world, and all that has been achieved in such a short period of time is quickly forgotten...few posters from other Li stocks and few that have sold and now want to get in cheaper are quick to blow the trumpet... the fact remains A40 still with the lowest debt ratio and shortest timeline to strong ROI for shareholders...before anyone jumps...I am assuming if all goes to plan without any major problem...but don't forget, the same rule applies to the other 2 also.

* There is a very high probability that a new offtake will be announced shortly...why sell now at the bottom?

* Some punters try to make you believe A40 offtake partner has same issues as AJM old offtake partner...realy?
  complicity the opposite...the last announcement has proved that and both parties seem to have a very good relationship and I would not be     surprised if they will take extra concentrate once their plant has reached capacity...not to mention the freezing of repayments...that is such a positive...not one of the 'doomsdayers' cared to acknowledge it.

Conclusion...being a holder of a producing Li mine and with the constraints of a 50/50 ownership structure now almost gone (will be all gone after the 05.02.2019) and no restrictive points to address now whilst negotiating for the remainder of stage 1&2 and possibly even stage 3 production.
Also with the lowest debt ratio compared to peers and the quickest pathway to strong ROI...I know what I am going to do.

All IMO and good luck all.