Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
James and Team Thanks for your response to my question about lithium companies last week, much appreciated. Having originally invested in Allkem, our holding has merged to become Arcadium (LTM). Can you please provide your thoughts on LTM and how it compares to Pilbara (PLS). Thanks
Hi Jim,
Arcadium Lithium (LTM) is the result of the $9.7bn all-scrip merger between Allkem and Livent, it trades in the US under the ticker code of (ALTM US), while being list on the ASX as a CDI. The logic between the tie-up was sound, as it produced a vertically integrated business with multiple product lines across the world but its still going to struggle as we’ve witnessed when the lithium price heads south in an aggressive manner.
We prefer PLS believing it will continue to perform strongly relative to its peers and the market hence we are long in the MM Active Growth Portfolio. Conversely, LTM still needs to work through the integration of the two respective businesses which will take time to produce results and carries with it risks which may easily take 1-2 years before it convinces investors. Essentially, PLS is just a cleaner, less complicated play on the same theme.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
