Novonix, the green tech play developing and providing battery materials and testing, looks and sounds great.
But the market just loves to moon green tech / new economy stocks. Even after the pullback we are still looking at a c$3bn ASX mcap…
on deeply negative operating profits, into a very tight monpol backdrop, aimed (as per the Dudley discount) at stocks.
Obviously, it is all about the future, and not so much historical profit or cashflow outcomes.
But that’s where the higher real interest rate story comes into play, particularly if the sales expectations turn out a little lower than expected…
or if profits push out a little further into the future than expected.
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