I think the next ALB quarterly will either confirm or dispel Q3 2018 as being the bottom of the correction. ALB gross profit growth trended down across 2018 and reached just 1.81% in Q3 2018 and then improved for Q4 2018. Another increase in ALB GP for Q1 2019 will give me confidence that the market is at the beginning of a solid up trend. A decrease in GP may suggest Q4 2018 was an outlier in a continuing downtrend.
It is also important that ALB are focusing on WA instead of South America given ALB is such a large and established player. I would expect PLS is going to become the FMG of lithium as long as it gets more support and doesn't get eaten by a bigger fish, it is very disconcerting that PLS is not getting more institutional support from Australian debt and equity markets to accelerate its market position. MQG claims to want to move into new energy stocks, well they could start by helping to build a solid Australian owned lithium champion here in WA.
PLS Price at posting:
72.3¢ Sentiment: Hold Disclosure: Held
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