agreed there are vultures out there circling this one- watch...

First 98 Last

Share
Profile

Follow
Moneymaker1979

2,336 Posts.

50

18/03/19

23:55

Post #: 37803885
Share

Originally posted by stanislar: ↑

The stock is typical of companies in start-up phase. Large investment phase, complexity in starting up, inevitable hiccups, fine tuning of new unproven plant, cost overruns and uncertainty over cash drain. Lynas was the perfect comparison, whoever made it. Why? because all these issues played out but ultimately once the market sees that the operation is not cash consuming the focus pivots to the strategic importance of the operation and the resource base. In Lynas' case it is as the only non-Chinese RE producer. SYR is a super long life, tier 1 cost asset with downstream value add potential (Louisiana), market share that is multiples of the next biggest player in a market that can can and should grow at above-normal growth rates for many, many years to come. It will be of strategic interest to the Chinese (who will see their supply competitiveness and supply security eroded) and for the Americans. The difficulty in getting production to this point at SYR has been a curse but only adds to the long term value of its market position. Have you any idea how difficult it will be and how long it will take for others to get to market now? What does that mean for cost of replicating what SYR has developed to date. I guarantee that if a South32 or a Chinese or a US industry player were offered SYR for a $billion right now in an uncontested take-over, they would bite of the hand of the seller. They could not begin to develop such a resource for that amount and industry players think much longer term - they would ride out the next 3 years or so of what may be marginal returns knowing that they will harvest the cashflows accruing from a dominant market position for many, many years to come.

If it becomes likely in the new few months that SYR won't come back to the market for equity (i think they may take on a bank facility or issue a convertible, but could no longer need either), then the stock will fly. In the meantime, do the shorts risk a predator coming in at this, the most vulnerable time, to take advantage of the pessimism at the very point that the investment phase is largely over? I wouldn't be short right now knowing that $60m of short stock needs to be closed out

Expand

agreed there are vultures out there circling this one- watch this space, can’t wait for the shorts to close their positions- this is going to fly.

SYR Price at posting: $1.06 Sentiment: Buy Disclosure: Held
5 Upvote

0 Great analysis

Reply

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Chaos reigns markets – so let's take stock of where we're at ahead of December

WC8

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

ACW

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MIN

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

There are more pages in this discussion • 11 more messages in this thread...

First 98 Last

Add SYR (ASX) to my watchlist

(20min delay)
Last 22.0¢		Change -0.010(4.35%)		Mkt cap ! $232.8M

Open	High	Low	Value	Volume
23.0¢	23.5¢	21.8¢	$592.6K	2.639M

Buyers (Bids)

No.	Vol.	Price($)
4	40540	22.0¢

Sellers (Offers)

Price($)	Vol.	No.
22.5¢	132427	6

View Market Depth

No.	Vol.	Price($)
8	116062	1.070
10	209299	1.065
8	106613	1.060
6	96647	1.055
10	132219	1.050

Price($)	Vol.	No.
1.075	58078	4
1.080	70753	4
1.085	72117	5
1.090	103210	6
1.095	57928	2

Last trade - 16.10pm 28/11/2024 (20 minute delay)

SYR (ASX) Chart

agreed there are vultures out there circling this one- watch...

Top Stories

History-making uranium sample grades and an imminent drill run. Infini Resources is poised to transform in 2025

Chaos reigns markets – so let's take stock of where we're at ahead of December

Pan Asia rebranding to 'clear confusion' after bagging $35M for Chile projects

This biotech stock raised $11M in a risk-off environment. Its Alzheimer's drug could change the game

MinRes's Ellison knows he screwed up – for that reason, hunt for new Chair to be sped up

Buyers (Bids)

Sellers (Offers)