Posted this under the SYR thread, but there are also some very...

  1. 9,236 Posts.
    lightbulb Created with Sketch. 2
    Posted this under the SYR thread, but there are also some very good points made, many of which I have raised with SYR holders myself, that also apply to other graphite stocks....

    An extract from Ben Kramer Miller on Seeking Alpha...full story here....
    My Favorite Contrarian Idea: Short Syrah Resources

    Summary

    • Balama is the largest graphite project in the world, but in a market the size of the graphite market a bigger project doesn't mean more sales.
    • Syrah's margin estimates are too optimistic: graphite price assumptions are too high and operating cost assumptions are likely too low.
    • Management is claiming that Balama can supply non-existent sources of demand for graphite such as carbon anode blocks and recarburizers.
    • If Balama actually gets into production it will be a much smaller project than management anticipates.
    • Shares have substantial downside risk while management's unrealizeable scenario is priced in, making Syrah an excellent short candidate.
    http://seekingalpha.com/article/313...2b7abc6f69f21ffa6c12419c7996486&uprof=45&dr=1
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.