The resource stocks were clobbered on Friday night, including a ~7% plunge by Albermarle (ALB US), one of the world’s largest lithium producers. We expect the likes of Pilbara (PLS) and Mineral Resources (MIN) to follow suit this morning, but we regard this as a buying opportunity, especially if the local names deliver even deeper pullbacks after soaring in recent months, e.g. MIN has surged +230% from its April low, leaving plenty of room for a sharp spike under $40.
- We believe the risk/reward towards MIN below $39 is compelling.
Trade Idea: Buy Mineral Resources (MIN) at $38.80 with stops at $36.45 – 6% risk.
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