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How would you play energy from here?

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How would you play energy from here?

Guys, keep up the good work! Last Wednesday's webinar was very interesting. I've played the energy theme through PLS, WDS and WHC. In an attempt to avoid being greedy and manage risk, I sold all three positions at different times over the last two months. I see conflicting signals in the energy space (particularly oil/gas) and I'm pondering if and how to re-enter the energy trade. Is it too late to get back into thermal coal via WHC or New Hope?

Answer

Hi Angela,

There’s lots of moving parts here but for simplicity I will look at the 3 stocks you mentioned, two of which we own:

1 Woodside Energy (WDS) $37.31 – Oil & Gas: The sector looks good medium-term but a touch stretched short-term, we are considering cutting our position up towards $40 while we would add into dips below $35.

2 Pilbara (PLS) $4.41 – Lithium: the stock and sector corrected aggressively over recent months, we now believe they are in an accumulation zone and are watching for opportunities accordingly.

3 Whitehaven Coal (WHC) $.9.60 – Coal: WHC surged on Friday following a  good set of data as they met production & costs guidance which was key with wet weather, costs pleasingly came in at the lower end of guidance for 1H. We remain long and bullish targeting a a break of last years ~$11 high.

 

 

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Pilbara Minerals (PLS)
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