PLS 3.17% $3.05 pilbara minerals limited

The whole sector ran hot in 2021. Now we have rising interest...

  1. 2,618 Posts.
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    The whole sector ran hot in 2021. Now we have rising interest rates and a global conflict is spooking investors with huge profits to cash in. Albermarle just reported a net loss for its 2H. Even with massive gains in spot prices, this miner still couldn't make a profit (including due to contract arrangements). I think the sector will continue to drop this month.

    BUT, everything is comparative. PLS has only dropped ~ 33% from its ATH. Whilst this appears a lot, the stock price has increased over 1000% in the last two years.

    The beauty of investing in commodities is that you should mainly focus on the price of commodities. Lithium is sky rocketing. The stock price will gravitate back to this trend in short time.

    Also, historically, February has been the worst month for shares. There is always a catalyst for these movements, and atm it's Ukraine and rising interest rates. The negative sentiment surrounding this will pass with time.

    I think PLS will bottom by the end of this month and then will trend sideways and then upwards to new ATH by the third quarter this year.

    This period is an amazing buying opportunity - the key is patience. Never in PLS's history have we been presented with an almost certainty that the stock price is worth a lot more than it currently is.
 
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