Why Lithium Americas Stock just Dropped 10%
posted on
Aug 18, 2020 01:51PM
https://www.fool.com/investing/2020/08/18/why-lithium-americas-stock-just-dropped-10/
Viewed from one angle, these are good stories, perhaps good enough to allay worries over the company's reporting a $0.07 per-share loss for the quarter, and encouraging investors to look, instead, for profits in the future.
Looked at another way, however, the fact that these projects are moving toward completion means they're not currently complete. Until they are, and until Lithium Americas is producing revenue, it's impossible to know how profitable those revenues will be -- or even whether the company will be profitable at all.
Until that is known, perhaps investors are right to be a bit more cautious about investing in Lithium Americas stock."
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I find it quite interesting that the author of the piece above is: Rich Smith. If you recall, Rich Smith is the same guy who yesterday told his readers that both Cauchari-Olaroz AND Thacker Pass would be in production in 2022. He was blowing the horn for LAC yesterday, but today he tells us that investors have wised up and "are right to be a bit more cautious about investing in Lithium Americas stock" until LAC produces revenue. Mr. Smith's error yesterday concerning his statment that indicated Thacker Pass would be in production in 2022 was a monumental error, something that could only be made by someone writing a story just to get his or her byline out in a published piece and certainly not with any focus on achieving accuracy. Today he turns on a dime from promoting LAC to telling us how right it is for investors to be more cautious.
My opinion on Mr. Smith: anyone who takes anything he says seriously is in danger of being led down the primrose path by someone who has no map and has both eyes patched securely so that he has no sense of direction. He may have been an A student in J School, but he certainly has a severe defecit when it comes to knowing his subject and researching same. JMO
Note: My intent is not so much a personal attack on Mr. Smith as it is to point out that we all have to be careful of the bias of any news piece on LAC or on any other company. As I said yesterday about his story yesterday: I really think this was sloppy journalism. He is not unique. This is a great reminder to look at the bias of a particular "news souce" and take that into consideration when reading an article about LAC. We have a great long term investment with LAC, but there are pot holes on that road to success.... as we found out today with the big drop in Share Price. Okiedo