LPI 3.64% 26.5¢ lithium power international limited

In terms of your para 2 response the share market presents many,...

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  1. 1,106 Posts.
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    In terms of your para 2 response the share market presents many, many value anomalies and that in itself presents enormous opportunity for investors and traders.  What matters to shareholders is the inherent value of a company and whether it has the potential to optimise its market cap.  AND that is one of the reasons why I and many, many others have invested in LPI.


    I will refer to the example I gave yesterday. If what MSB CEO Cristobal Garcia-Huidobro says is accurate and LPI/MSB can triple the size of the Maricunga resource, then we will have a resource at Maricunga with an IN GROUND value of US$90+ billion dollars, and benchmarking POSCO's recent Sal de Vida resource purchase, a Maricunga resource with a market value of US$944.2 million - and I have decreased the grade from 1165mg/l Li to 1000mg/l Li.


    Now, looking at the company with the $250 million market cap I referred to in my post yesterday, its lithium resource has a market value of US $13.2 million and is an example of one the market's anomalies I mentioned above.  So using your logic, investors would be happier invested in a company with a $250 million market cap that does not match the underlying economic fundamentals, as opposed to an significantly undervalued company with very strong underlying economic fundamentals.  Somehow I dont think so.  Hype and hope an only take a company so far.  Substance generally wins in the end.

 
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Currently unlisted public company.

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