Sigma Lithium Drops 8.97% to Record Low

Sigma Lithium(SGML) has experienced a significant decline, dropping 8.97% and marking its fourth consecutive day of losses, with a cumulative decrease of 23.40% over the past four days. The share price hit a record low today, reflecting the current market sentiment and investor concerns.

The strategy of buying SGML shares after they reached a recent low and holding for one week resulted in significant losses. The strategy's return over the past five years was -70.82%, with a benchmark return of 44.90% and an excess return of -115.72%. The Sharpe ratio was -0.64, indicating poor risk-adjusted returns, and the maximum drawdown was -82.52%, highlighting the strategy's high risk and substantial losses.

Sigma Lithium is currently facing several negative signals, including a wide and falling trend, which suggests weak performance in the near future. This trend has contributed to the recent decline in the stock price, as investors may be cautious about the company's prospects.

Despite the recent challenges, Sigma Lithium has also announced a new offtake agreement with a major Asian EV manufacturer. This agreement could positively impact the company's future prospects and stock performance, as it indicates growing demand for the company's products in the electric vehicle market. However, the immediate impact of this agreement on the stock price remains to be seen, as investors continue to weigh the potential benefits against the current market volatility.