James Marlay: Welcome to buy Buy Hold Sell, brought to you by Livewire Markets. My name's James Marlay. And today we're talking about stocks for the energy transition. I think it's becoming widely accepted that we are taking away to a new energy world. How we get there, when we get there, far less certain. So to help us navigate the way that we get to the energy transition, or get through the energy transition, we've got Luke Smith from Ausbil and Tom Richardson from Paradice. Let's talk about a few energy transitions stocks. Luke, I'll start with you. Lithium. Couldn't be hotter. Well, it was hotter. Allkem, one of the bigger producers in the Australian market. Buy, hold or a sell?
Allkem (ASX: AKE)
Luke Smith (BUY): Yeah, it's a buy. Lithium, we strongly disagree with the negative view around lithium. We've seen pricing strength, and demand backdrop is extremely strong and strengthening. Allkem, three growth assets, puts it on par with the majors. It's a buy from us.
James Marlay: Okay. Tom electric vehicles, batteries, everyone's into it. Allkem. Buy, hold or a sell?
Tom Richardson (BUY): It's a buy, absolutely. I wouldn't say it's hot. I would even say that the sector's been very cold. In fact, it's the new sector that people love to hate. But it's absolutely a buy. China is still the biggest buyer in the market, and it looks as though their battery production actually is inflecting up. And so it's not what people expect. And there's a lot of short interest in all these names. They might get caught by the demand strength in China. And maybe prices even go higher, not lower like people are expecting. So it's a buy.