Question on Green Energy stocks

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 26/03/2022

Question on Green Energy stocks

Hi, I am interested in a few different shares related to green energy and I am wondering what your view point will be. I am interested in your view relating to PH2, INR, KZR and LKE. I am already invested slightly into these shares are they high risk or will they have positive returns?

Answer

Hi Luke,

I have briefly looked at all 4 of the stocks which have demonstrated high volatility over recent years. Always keep in mind that while “clean energy” has/ will become a hot sector, there undoubtedly will be some painful failures:

Pure Hydrogen (PH2) – The stocks halved this year and rallying 4x into Christmas i.e. its a volatile / high risk play. This hydrogen fuel cell technology company has some potential but we would be cautious taking too large a position.

Ioneer Ltd (INR) – Similarly lithium producer INR has dropped over 45% this year, at this stage of the cycle we prefer established stocks like Pilbara (PLS) and Allkem (ALK) that are selling into the currently high prices.

Kalamazoo Resources Ltd (KZR) – KZR is a small Perth based $51mn mining and exploration business which has fallen by over 60% over the last 2-years, we don’t know anything about it and technically we are neutral at best.

Lake Resources (LKE) – we like his $2.2bn lithium business which operates in Argentina, its ok around $1.75 but great risk reward 15% lower – like the lithium stocks it has a propensity to move significantly.

chart

Lake Resources (LKE)

LAST UPDATED 25/03/2022 17:42

Latest Reports

Afternoon report 24/04/2024

The Match Out: CPI dents equity rally ahead of ANZAC Day

Equities followed the US market higher this morning, also adding a little premium thanks to a handful of positive quarterly reports that were announced after the North American markets closed. That all took a back seat as inflation data printed late morning, CPI coming in hotter than expected which sent the market into a spin, falling ~0.6% at the time before finding some relief. In the end, the index closed little changed, a good result given the circumstances though largely thanks to support from the Big 4 banks.

Morning report 24/04/2024

Portfolio Positioning: Bonds fell, dragging stocks along for the ride, both are now basing in our opinion

Bond markets have struggled over recent weeks as inflation appeared increasingly “sticky,” but it hardly registers on the chart compared to their weakness through 2021/2 and mid-2023. We believe the local credit markets have come back to realistic levels as the RBA awaits further economic data to deliver clarity on the underlying strength and direction of the local economy. Traders have gone from being far too optimistic on rate cuts into Christmas to becoming almost pessimistic; the US futures markets have gone from pricing in three cuts to 1.77 cuts, or one definitely, and probably two.