RE: Aim Circus25 Apr 2019 08:29
vauch - the only way to avoid the inevitable decline into trading oblivion is to actually research the companies that you are investing in. It only makes sense to do this in a handful of cases where the underlying fundamentals are strong enough that there is no doubt about their quality - so not an unproven business model, a new tech 'app' that could be defunct tomorrow or the latest in fashion related 'brands' that could equally come a cropper.
Instead you should ideally find a company that operates in a semi-dominant way in a market that is proven and is not going away. Something like having one of only three mines in the world, for example. Better still if that market is proven to be growing at a significant rate, such as the Vanadium market is, JUST FROM STEEL ALONE.
EVEN better is if that company is diversifying its operations so as to move further up the value chain, eg such as producing high vale Vanadium electrolyte for the potentially huge VRFB market. BEST OF ALL is if that company is targeting to become the world's largest producer of that electrolyte as was stated in yesterday's Business Live article:-
"To put this in context, said Peter Oldacre, Bushveld Energy’s head of origination and investment, this would be the equivalent of 8-million litres of electrolytes and would represent 50MW of power. This would put Bushveld in the top five of global vanadium electrolyte producers and its plans to ramp up to 1,000MWh of capacity in East London would push it to the top, Mojapelo said.
To take the value addition of vanadium to the next step would be orders from Eskom and other big users that would justify the construction of the batteries in SA, with an estimated 70% of local content, he said."
https://twitter.com/BushveldMin_Ltd/status/1120949747559301121
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