Will Pilbara (PLS) go back up?
What is your opinion on PLS? will it go up again?
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Answer
Hi Sanjay,
Lithium miner Pilbara (PLS) is a volatile stock in a very volatile space. We went long in January and are showing a ~11% paper profit conversely investors who bought into strength through 2022/2023 could easily be down 20-30%, with this sector its been a lot to do with market timing as market sentiment has experienced wild gyrations in both directions.
The price of lithium has collapsed over the last few years on a slower than hoped take up of EVs, especially in the US, and ever increasing supply. While we believe the worst is behind the sector and PLS is our favourite large cap exposure to lithium we continue to anticipate elevated volatility through 2024, hence we will be very open to selling PLS into squeezes on the upside, i.e. PLS is still the most shorted stock on the main board with ~21% of stock held short.
- MM is bullish towards Pilbara (PLS) holding the miner in our Active Growth Portfolio.
