There is a distinct game going on here - the one Trader 10 is alluding to. The BEOT is trying (successfully it seems) to hold the SP firming in a trading range to soak up as many shares as they can. The SP is slowly edging up. While shorts are irrationally high with PLS, I don't believe that this is the Instos' main game - they just want to accumulate at scale. The retail shorts are playing into their hand - and there will only be a painful way out for them. Remember, the BEOT missed out on the lithium 1.0 scene, so most of the initial holdings of the WA hard rock juniors were held by retailers (that's people like you and me for the most part). The longer they can hold a seriously quality stock like PLS down - the greater the uncertainty they can put into the minds of the retailers - hoping they question their judgement, the sector, oversupply, whatever - and they sell. And because they have such a successful strategy - they know that even when the SP does edge up (and I think we are at the beginning of a slow climb right now) - they are banking (literally) on mom and pop holders to be saying 'let's get out of the sector now that we are near break-even', so they will harvest retailers all the way up.
Yes, the sector as a whole has had a very bad 12 months for a bunch of well articulated reasons - but Pokerface is right - the fundamentals of PLS are extraordinarily good - and you can bet the BEOT knows that too. PLS will be a serious cash machine soon. Moral of the story - hold on to your shares. Do not let PLS be the one that got away, even if you are tempted to sell out when you finally go green.
The shorting game puzzles me here - I get the angle with the sector over the last year, but I think doing this with PLS is a very dangerous game, and you are no longer playing with ignorant retailers - you're playing into the hands of the large Instos. Good luck with that! They are soaking it up. Their fear will be that the shorters start to panic and cover. BEOT will want to keep a lid on things to manage the SP up.
Me - I've held for the last 2.5 years (but am not in PF's league for time or holdings!). And have been adding to my holdings over the last couple of months. I will continue to hold... well past $1, $2 etc. When dividends eventually flow - I'll reassess my position (and the market will definitely have done so by then). Wishing the LT holders all the very best. I think 2019 will be a fascinating and profitable year for us (and a few of the peer juniors). And if we have to wait until 2020, so be it. But I think the rerate will be sooner.
PLS Price at posting:
67.5¢ Sentiment: Buy Disclosure: Held
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