My Sunday arvo entertainment, analysing charts with sport on the box. I always stop at this one and just stare in wonder. It would be sad if I was one of the poor non holding desperate souls who are posting on the other PLS threads, absolutely churning inside and trying to stop the self inflicted uppercuts from pounding their now pulverised jaw. But I'm not. I'm one of the PLS cult members, who having weathered the worst that FUDers, the market, bottlenecks, withdrawal of Chinese government subsidies and all the usual issues that go with ramping up a Lithium hardrock plant can throw at us. Now reaping the rewards of this beautiful beast that lays before us in the below chart.
The price is well and truly in blue sky backed by a tidal wave of fundamental news that is engulfing the sector. Market commentators are talking up the sector finally with most still not quite having a real grasp of the Lithium sector and the dynamics that are in play. PLSers here have a better understanding than most of the Aussie/world commentators, thanks in part to the many wonderful posters who scan the web looking for the signposts to the promised land and offer their own analysis of the dynamics.
I had a target in mind for later this year. I'm reassessing that as this surge is upon us quicker than expected. In large part due to the market supply/demand situation that has been brought forward considerably from what was being reported only 6 months ago. In hindsight, I invested in this Tier 1 company because I expected the imbalance, but like many here, was beat up badly with timing out by a smidge. Thankfully, I had funds available to really take advantage of the sale prices that were there for all to scoop up over a considerable period of time. Never have I had a holding as large as this baby. It's developed into that. I have scaled back my diversification as I believe the Warren Buffet quote, “Keep all your eggs in one basket, but watch that basket closely”.
Why, because as those who read my posts know, I watch this basket closely. I don't need to diversify. My life isn't reliant on this investment and I haven't been impelled to invest in other stocks to diversify for diversifications sake. At some stage I will take some profits. At some stage I will want to treat my family to some luxuries while we are in good health and young enough to enjoy the treats. At some stage the company will mature and the enormous returns will probably start to moderate and I might spot another compelling investment.
A good quarterly and this surge may take the price to a level that is a double step (Approx. 60c). If Spod prices continue to surge, what we not long ago dreamed about will become reality. The only people I know that are invested in this sector are the family and friends I've encouraged to get on board. When a taxi driver starts talking about PLS, it will be time to consider a reduction in holdings.
(20min delay)