PLS 0.00% 49.0¢ pilbara minerals limited

I cannot understand some of the posters on this forum. I have...

  1. 1,075 Posts.
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    I cannot understand some of the posters on this forum. I have read the negative posts and then asked myself, "has the value of the PLS business, as a result of this announcement, reduced its value in any way?". The answer that immediately comes to mind is a very definite NO!

    I can see only positives from this announcement, for example:

    1. PLS can stockpile unsold product. Yes it affects short term revenue, however the value of the product is still there and it will be sold make no mistake. So that is a small deferment of only PART (not all) revenue for a relatively short period.
    2. The fact that PLS is good enough to help existing customers by accepting their genuine reasons to delay shipments, has also freed up PLS to seek new customers for unsold SPOD. That is a HUGE positive!! PLS is now able to expand its customer base and additionally consider asking a higher price for SPOD from customers that really need it.
    3. Even if we need to stockpile some product for later sale, there is a very strong chance PLS will get a higher price based on the many forecasts of higher prices by the likes of JL and others as we have seen on HC.

    IMO, the value of the PLS business over the medium to long term has not changed one bit!

    Some have questioned the cash position of PLS and have suggested possibilities of a CR. To my mind that is nonsense! PLS are still shipping product and receiving payment. They still have a substantial cash balance AND an undrawn credit facility. They can also reduce costs by delaying further development of stage 2.

    The sky is not falling in! The value of the business has not changed.

    The only change is the share price which we know hasn't reflected the value of the business at all times.

    Many of us have book losses on PLS and possibly other shares. However, the only REAL loss happens when we sell at a loss. So we need to ask ourselves the same question I asked myself. If like me you believe the true value of the business is unchanged by this announcement, then surely it does not make sense to sell at prices that are less than your own valuation of the business.

    All the above is IMO and DYOR.

    Good luck to all true investors who invest in the value of a business. Cheers
 
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