A careful look at the chart, and you can easily see that SLP is forming a bull flag after the peak of £1.50. Compare this to the last time this happened, a similar bull flag sent this higher. It looks to be in a strong, steady uptrend for now. Waiting for the bull flag to break.
Note: Not professional financial advice. Thanks and GLTA.
Market cap: £336m
Cash on balance sheet: $102.1m
Net profit in Jan-Mar 2021 quarter: $43.1m
You can quickly see how undervalued this company is, essentially running with a 1.5-2 price-to-earnings ratio so long as PGM prices don't fall significantly.
Price action also extremely bullish. Chart seems to indicate clear route to the 140s.
Sylvania has finally broke out of its channel its been in for all of 2020.
Chronically undervalued stock - history of 60%+ rev growth but with a TTM P/E ratio lower than its much larger competitors such as Impala Platinum.
Expect it to rally this week in the same vein as Tharisa (LON:THS), which rallied 80% in a matter of weeks, before ending the year at 200p+.
Nice pull back, 36.6 should act a spring board for next leg higher with huge volume node/shelf. Losing that is would mean 30p but thats just a better value entry. Value consistently building higher.
Industry Sector: - Basic Materials
How did I come across it?: - I was performing research on Hybrid car market and then came across Rhodium (it’s a platinum group metal). Platinum's main use is in diesel vehicles, whereas palladium tends to be used in petrol engines. But rhodium is the most effective catalyst for nitrous oxide (N2O) emissions in petrol...
SLP is up over 70% from when I first posted, and last week their broker (Liberum Capital) has raised target from 35p to 68p and potential 106p, based on a 'considerably undervalued tail of production'.
All good news, along with Platinum and Palladium prices holding strong.
Chart shows value building higher, buy the dips!
Metals looking good for next few years. This company has no debt and rising profits in a sector set to make big gains in the coming years. PE of 5.44. Recent pullback gives great entry into trend on a large hammer. Wait for confirmation candle or enter with stop below hammer. Scale out for huge rounded bottom formation.
We have exhausted selling and have a classic Wyckoff bottom. I would be looking for an eventual target of 11.6p. Buying pressure should see a quick move through 10 - 11p.
