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MM’s thoughts on GL1 and USHY please

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MM’s thoughts on GL1 and USHY please

My questions are about two very different investment propositions: 1) GL1 - following the 14.02.23 release of GL1's Scoping Study on the Manna Lithium Project, and the subsequent share price fall (perhaps also related to falls in lithium stocks generally?), can you please provide your views on the scoping study, the markets expectations on and reaction to the study announcement; and MM's updated views on the stock, including what you would rate it as and entry points etc? 2) USHY - Does MM like this currency-hedged high yield bond ETF? If so, can you please explain what you like about it and whether you would consider it a Buy and at what price?


Hi Darren,

Two very different questions here which I have addressed separately below:

1 Global Lithium Resources (GL1) $1.70: we feel the decline in GL1 is far more influenced by the lithium sector as opposed to stock specific news, but as a higher Beta plat to say PLS & AKE its drop has been more dramatic. We like GL1 at current levels leaving room to add to the position around the $1.50 area noting this is a very volatile stock.  PLS is a safer way to get exposure to Lithium but GL1 will have the most upside if they execute while Lithium prices are still high.

2 Global X USD High Yield Bond (USHY US) $US34.92 : in today’s hawkish environment we wouldn’t be surprised to see another test down towards $US33 which is an area we could look to accumulate. We hold the OZBD in the Income Portfolio which is a lower risk domestically focused version of this (although it holds Govt, Semi Govt & investment grade bonds) and this is also being negatively impacted as bond yields edge higher. The other way to play the riskier, high yield US bond market is via NBI listed in Australia. We say this because an ETF trades at asset backing, while NBI is currently trading at $1.44 versus its net asset backing of $1.67.


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Global Lithium Resources (GL1)
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