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PLS - Pilbara Minerals

Discussion in 'Stocks I-P' started by System, Mar 26, 2015.

  1. System

    System Administrator

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    Pilbara Minerals Limited (PLS) is a minerals exploration and mining company with a sole focus on the Pilbara region of Western Australia.

    The Company is an emerging Tantalite producer from its Tabba Tabba Tantalite project which is a 50/50 Joint Venture with leading metallurgical and process engineering group Nagrom. Tabba Tabba is located 75km south of Port Hedland.

    http://www.pilbaraminerals.com.au
     
  2. peter2

    peter2 Well-Known Member

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    Pure explorer drilling Li + Ta resource in WA.

    Recent price BO in late Jan16 due to demand for lithium sector. Price now consolidating below next BO level.

    PLS1602.PNG
     
  3. pixel

    pixel Well-Known Member

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    strong resistance at 40c with over 2M offers visible. (never mind the "Dark Pool :sly:)

    PLS md pm 22-02-16.png

    But between here and there, it offers room for a bit of swinging. (I hold a small swinger.)
    If 40c does break, things could become exciting.

    PLS all 22-02-16.png
     
  4. Muschu

    Muschu Well-Known Member

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    Pixel - if I may

    Would you care to comment on PLS Vs GXY as a long term lithium producer? Or is there another?

    I am unskilled at reading the charts and certainly both have had significant SP movements. Perhaps depends not only upon who "finds" the best mining sites but whether they have enough dollars behind them to venture on....

    I don't know if the "lithium story" has investors over-excited or whether there is a blue sky ahead....

    Is any company in Australia actually mining, producing and selling lithium at this time?

    Appreciate any comments you care to make but also understand if I am asking too much.
     
  5. pixel

    pixel Well-Known Member

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    Hi Muschu,

    I'm still primarily trading on Technicals; therefore I'm looking at the charts and try to identify certain patterns that I associate with "more likely than not". The way a stock is traded over time and at different times of the day may also give me an indication of Market Sentiment.

    Therefore, any comments of mine, including terms like "support", "resistance", "blue sky", have to be taken in that context.

    Having said that, I also want to make it clear that I - more often than not - attempt to "understand" the nature of a company, as well as the sector it operates in, its neighbours and competitors.
    The Lithium space is currently en vogue and attracts a lot of wannabes, hasbeens, and letstrythis. As far as I'm aware, none of the Pilgangoora players is anywhere near to mining and producing saleable goods. That makes GMM (who picked up GXY's mine that's been on C&M) the only near-term producer I know of. With their Sal de Vida lakes in Peru, Galaxy are also quite a distance away from selling product; but if GMM get Mt Caitlin back up, both would benefit from any revenue.

    In short: If I was only investing for the long term, i.e. looking for solid producers with reasonable revenue prospects, I'd concentrate on GMM and GXY. Indeed, I did that for most of the time, but since the charts suggested to me they're currently at "fair value", I took profit and am now looking at some possible up-and-comers for a few rather short-term trades. If one or two turn out to run hard into "blue sky", I won't argue and happily stay for better profits - "as long as it takes ..."

    PS: small detail as an aside - when it appeared that PLS would close on today's High, I added another bid to add to the ones I'd bought earlier at lower levels; LIT seemed to go the other way, so I reduced my holding, taking a small profit and only carrying a half position overnight..
     
  6. Muschu

    Muschu Well-Known Member

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    Thanks for going to so much trouble Pixel. I invariably find your posts informed and interesting....

    Not sure what to do here so will probably watch for a while... I gather when you "added another bid" to PLS today that you actually bought?

    Is PLS actually in production?

    And are there significant overseas competitors well ahead of Australia in this area?

    Sorry - meant to thank you and not ask further questions - but I failed... :)
     
  7. pixel

    pixel Well-Known Member

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    yes, when I bid into a Closing Auction, I usually make sure I get filled.
    not yet; read http://www.asx.com.au/asx/statistics/displayAnnouncement.do?display=pdf&idsId=01708224
    None that I'm aware of; but I focus on Australian stocks, so O/S ones aren't really my concern.
     
  8. Muschu

    Muschu Well-Known Member

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    Many thanks once again Pixel..

    I see PLS got off to a good start this morning as did the market in general..... and then retraced somewhat.. Strong volume however.

    GXY and GMM much quieter.
     
  9. pixel

    pixel Well-Known Member

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    That's the difference between near-production and speculative hype :D
     
  10. Muschu

    Muschu Well-Known Member

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    I "think" I get it i I go back to your earlier comments.... GXY/GMM for the longer term and PLS as a short termer?

    Have you a "take profits" and stop-loss on PLS if you don't mind sharing?

    Rick
     
  11. pixel

    pixel Well-Known Member

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    Speccies like LIT and PLS, I trade on a rather "short fuse" meaning with lots of discretion, based on observation of trades and perceived market sentiment; usually that implies tight stops to protect profits.
    In PLS's case, I gave it 1c leeway to allow the morning gap to close. That's now done, and I even increased my position to a cost base of 39c; but if the breakout above 40c fails, I'm out.

    As regards targets, I don't stress about "how long is this piece of string?" Sometimes, I might play with Fibonacci retracement and do a rough extrapolation. In the chart below, the key levels 22, 32, and 40 give me a Phi target of 50c (full range 100% = 18c (40-22), phi level = 32c). In strong markets, the range could even double to approach 58c. However, I use those "targets" only as an estimate, which I discard just as quickly if market sentiment and trade direction suggest otherwise.
    As an interesting aside: The highest bid in last night's Closing Auction got to 56c.

    PLS Fib 23-02-16.png
     
  12. pixel

    pixel Well-Known Member

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    Final Update:
    Seeing how LIT fell out of bed - luckily after I took profit - I decided not to wait till PLS followed suit and closed red. 39.5 is still better than break-even :) I now have my cash back plus a little "interest" to invest again or elsewhere at a later date.

    PLS Stop 23-02-16.png
     
  13. Muschu

    Muschu Well-Known Member

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    Interest went quite rapidly.. Profit taking?
     
  14. Muschu

    Muschu Well-Known Member

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    I no longer hold PLS but friends do am have discussed it with me..

    They have received offer documents [capital raising] and are wondering whether to participate at 38c.

    They're seeking opinions [not advice] but I feel unable even to offer an opinion - don't know enough.

    Any thoughts please?
     
  15. skyQuake

    skyQuake Well-Known Member

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    What?! They don't want a low risk 79% return in 3 weeks?
     
  16. Muschu

    Muschu Well-Known Member

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    Other factors may be involved SQ - but thank you and I will share your opinion...
     
  17. skyQuake

    skyQuake Well-Known Member

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    I'd assume they're holders, thus the ability to participate in the SPP. They can sell part of their holding here @ 68c, and use those funds to apply in the SPP.
    Though this will be a very heavily oversurbscribed SPP with an allocation of 50% if they're lucky
     
  18. Muschu

    Muschu Well-Known Member

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    Thx SQ. I haven't read the offer but gather the minimum take-up is $5k worth of shares. If so - a fairly large amount for the risk ?
     
  19. skyQuake

    skyQuake Well-Known Member

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    Looks right, was 5, 10, 15 application tiers.
    I fail to see the risks here, but obviously don't understand the personal circumstances of the holders.

    If they own stock, they can sell 21,583 @ 0.695 = $15k and use that $15k to apply for 39,474 shares in the SPP.
    Assuming roughly 50% allocation (lets say 54.6% for example), they'll get around 21,500 shares, replacing the ones they sold, plus a refund for $6810 from the scale-back!
     
  20. Wyatt

    Wyatt Active Member

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    Anyone up for the 30% range trade in PLS. Poor short term news with MIN, great longer term potential.

    PLS_WKY.png
     
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