Thoughts on ASN and AGY please
Hi Guys, What are your thoughts on these two companies ASN and AGY. AGY is down around 64% this calendar year along with the pullback in the lithium sector. Thanks, Mitch
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Answer
Hi Mitch,
The lithium Sector has thrown up some major winner & losers in 2023 such is the nature of this volatile space, even at the relatively large end of town with Liontown Resources (LTR +130% while Lake Resources (LKE) is -77%. as we saw with the “Tech Wreck” just because a company has .com or lithium on its CV doesn’t mean it will be a winner.
We have considered the 2 stocks mentioned separately for obvious reasons using some technical levels where appropriate to quantify the risk/reward:
- Anson Resources (ASN) 16c – we discussed this $210mn WA business back in 2022 MM Q&A its since halved in value and looks too hard apart for the aggressive trader.
- Argosy Minerals (AGY) 19c – we discussed AGY a few months ago MM Q&A as we said then we would be concerned if the stock couldn’t hold above 35c, this has eventuated also placing the sock in the too hard basket.
NB Of the two from a technical perspective we see more upside potential in ASN but neither are on our radar and we find it hard to add any real value in that part of the market.
