LYC 1.15% $6.14 lynas rare earths limited

SP drop explained

  1. 127 Posts.
    The drop of the SP today is confusing me. Based on a very positive announcement the SP has barely recovered to a level of four weeks ago. At that time there was hardly any fact available that there would be substantial free cash-flow to pay-back the operational expansion plus the production over-achievement. So what is the market waiting for to get it back to pre-AL levels? Even the capital increase during AL's reign was at 8cts, which is still way above today's SP and fundamentally LYC has improved on many fronts since then. I have four possible explanations for the current restraint:
    (1) Investors are cautious of this stock because of its history;
    (2) Investors believe that the upcoming Quarterly will bear negative surprises;
    (3) A institutional investor is restraining the upward movement to retain an attractive entry point or to trigger selling by existing shareholders (this will probably only work on low volume such as today);
    (4) A great number of investors trades this stock for a short-time only and realises gains prematurely:
    (5) All of the above...
    I am not suggesting any conspiracy, just possible market behaviour explanations. What do you think?
 
watchlist Created with Sketch. Add LYC (ASX) to my watchlist
(20min delay)
Last
$6.14
Change
0.070(1.15%)
Mkt cap ! $5.469B
Open High Low Value Volume
$6.15 $6.46 $6.12 $57.62M 9.117M

Buyers (Bids)

No. Vol. Price($)
15 17835 $6.13
 

Sellers (Offers)

Price($) Vol. No.
$6.14 3483 8
View Market Depth
Last trade - 13.00pm 02/03/2021 (20 minute delay) ?
(live)
Last
$6.14
  Change
0.070 ( 1.27 %)
Open High Low Volume
$6.15 $6.46 $6.12 1808100
Last updated 13.18pm 02/03/2021 (live) ?
LYC (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.