PLS has already fallen 37% from its 2023 high, with the stock not being helped as it appears the vehicle of choice for short sellers, PLS now has 18.3% of their float short-sold, leading us to question who is left to sell! These shorts are betting heavily on PLS struggling or the lithium price continuing to decline, with the latter feeling more likely. It proved hard for investors to forecast where the lithium price is headed next, which makes us question the risk/reward with such a huge short position, however, when it does turn, expect some fireworks on the upside as shorts scramble.
- We are looking towards PLS as our preferred vehicle to increase lithium exposure for our Active Growth Portfolio, which already holds iron ore/lithium play Mineral Resources (MIN).
MM are cautiously bullish towards PLS ~$3.30
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