Depending on who you ask, the recent movements of the Core Lithium Ltd (ASX: CXO) share price might be described either as tragic or as a joke (or perhaps even both).
For long-term shareholders of this ASX lithium stock, there's probably not much to laugh about, considering Core Lithium has lost a brutal 48.15% of its value over 2024 to date alone. That's going off the current Core Lithium share price of 14 cents.
Over the past 12 months, those losses extend to an even more savage 86.41%. The company is also down around 92% from its last all-time high of around $1.70 per share which we saw back in late 2022.
If one doesn't own Core Lithium shares, this dramatic drop might make the idea of investing in Core Lithium today appear to be some kind of joke.
Indeed, imagine if one had told investors back in late 2022 when Core Lithium was going for close to $2 a pop, that the company was destined for a 14-cent share price. They would have probably thought you were joking.
Core Lithium's woes have stemmed from a few factors. Lithium prices have dramatically come off the boul over the last 12 months. Producers like Core have had to battle with an excess of supply in the rechargeable battery ingredient.
Core Lithium's flagship Finniss project was even forced to suspend production earlier this year thanks to falling prices.
It also didn't help sentiment when Core Lithium posted a net loss of $167.6 million for the six months to 31 December 2023. A recent quarterly update has done nothing to sway opinions to date.
But is the current Core Lithium share price still a joke at its current levels?
Are Core Lithium shares laughably cheap or comically expensive?
Unfortunately for Core Lithium investors, at least one ASX expert doesn't seem to think there's any value to be found in this lithium stock right now. Earlier this month, my Fool colleague looked at ASX broker Goldman Sachs' views on Core.
Whilst Goldman predictably didn't call Core Lithium shares a joke, the broker still gave the company a 'sell' rating, along with a 12-month share price target of just 11 cents. If realised, that would see Core shares dip down to new five-year lows.
Goldman cited valuation concerns compared to its peers as one of the reasons its analysts are bearish on Core. The brokers also suspect the company won't be able to restart production at Finniss for at least the remainder of 2024.
Foolish takeaway
Whilst it might seem harsh to call Core Lithium shares a joke, this company's experience over the past 12 months has been a textbook disastrous investment.
But if Core Lithium can recover from its recent lows and survive until the next rebound in lithium prices (whenever that may come), perhaps the joke will be on Core's detractors and short-sellers. We'll have to wait and see.
