Far East Capital Newsletter
Inflation does not stand still. The 5EA assessment
10 Jun 2023

In This Issue

Inflation does not stand still. The 5EA assessment

In one of my previous Weeklies I said that we need to get used to inflation, believing it is going to be around for some time. One of the reasons for saying this is that inflationary pressures and characteristics within the economy will change. It will take on different features and have different causes and effects as it gradually infiltrates all aspects of our society. The inflationary virus affects different people in different ways. Some will be immune and even make money out of it, whereas others will only suffer.

We finally got around to doing a more considered assessment of 5EA Advanced Materials, but our opinion has not changed. 5EA is developing a long-term industrial minerals project. It could become a good dividend paying stock at some point. Industrial minerals companies are normally boring in their share price performance but 5EA was has been anything but boring, showing extreme movements up, then down. Those extraordinary movements should never have happened. Now that the speculation and hot traders are out of the way, long term investors can accumulate positions according to their fundamental expectations. Earning estimates can be found in broker research. 

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