LTR has collapsed since Albemarle walked away from its $6.6bn bid as Gina Reinhardt’s blocking stake made it all too hard for the US miner – they owe her a lunch! The company has subsequently exited the stock ~$1.26, well below its $3 bid, leaving Gina the standout holder on the register. We assume she still may be considering a bid, assuming she still has a similar long-term outlook towards Li as RIO. With over 10% of LTR also held short, a bid here would hurt a lot of traders, but that’s not a reason in itself to go long LTR. However, although it’s likely to be a volatile journey, we can see LTR testing $1.50 in the coming years, which affords decent risk/reward in this volatile name.
- We can see LTR bouncing between 50c and $1 over the coming year, and the risk/reward looks attractive into dips – MM is long LTR in our Emerging Companies Portfolio.
MM is long and bullish LTR
Add To Hit List
