Price to book is usually best explained by return on equity, balance sheet and plain old accounting, almost as if some accountant was looking at the stock and didn't know the industry. P/B and ROE line up usually independent of industry. If the PB is high they better have good ROE; and usually do. SQM and POT have pristine balance sheets. They should lever up a bit more if anything. P/B is just one piece of a bigger puzzle.
PBR: 0.70x book and 6% ROE
CVX: 1.69x book and 13.5% ROE
AGU: 2x book and 14% ROE
YHOO: 2.75x book and 9% ROE
SQM: 3x book and 16.75% ROE
PG: 3x book and 16% ROE
POT: 3x book and 16% ROE
WMT: 3.4x book and 21% ROE
MSFT: 4x book and 26% ROE
ITW: 4x book and 18% ROE
EMR: 4.5x book and 19% ROE
HTLD: 4.8x book and 19% ROE
AAPL: 4.8x book and 32% ROE
MMM: 5.4x book and 26% ROE
KRFT: 6.5x book and 61% ROE
UPS: 15x book and 82% ROE
Sentiment: Strong Buy
Maybe price to book is a better measure for commodity based companies which requires the ability to project commodity prices into the future.
SQM Price/Book (mrq): 3.110
If that number is correct, SQM is overpriced by 311 percent.
The PE and PEG ratios aren't very good indicators when it comes to commodity or cyclical stocks. If you want to buy during a downturn when the stocks are cheap, then you can expect the PEs to expand and actually go up dramatically as the companies stop making much money even if the stock is down 50-80+%. In a decent up cycle in Potash prices, SQM could put up in excess of $5 easy. With their added capacity and if things got crazy in the Potash market they could do $8-11+. This takes into account zero growth in lithium or iodine sales or profits. Of course analysts would be raising their numbers like crazy probably above and beyond what I have listed in that environment and the momentum guy would be plowing back in.
Sentiment: Strong Buy
ROC the No. 2 Lithium Producer in the world was recently rose from 60's to 80's for their Lith/ SQM the Largest & Lo Cost Producer should have a much higher SP than it has now. Was in the 60"s a little over a year ago. Easy doubl from here. WAY undervalued!
Sentiment: Strong Buy
The future is anybody's guess.
However, a word to the wise. This kind of skewed statistics is the domain of the stock manipulators extraordinaire that populate our markets.
Do you really think that electric mobility will not grow in the next five years?
The fertilizer side is wounded with the erosion of corn prices, but unless oil drops to $ 30 a barrel ethanol will continue to provide a corn market and prices for both crops and fertilizer will recover.
Depending on your horizon, this could be a god opportunity to begin a position or in my case double down to bring my current base down a little.
Again the shorts are feasting on the tragedy on Ukraine and the madness in Minor Asia.
PEG Ratio (avg. for comparison categories) 4.83 which is extremely high indicating the stock is massively overpriced if the PEG ratio is correct.
You took the words out of my mouth.
Great time to buy more to beat the crooks at their game.
Their leach/ license is getting shorter by the day.
If markets are rid of HFT, and naked short selling, there is an easy 25% up side if retail investors reenter the market.
Momentum sure seems to be building upon lithium batteries.
Just sit tight. SQM has a predominant position on the issue.
Just hope that ponce & co. see the worth to themselves to correct the governance issues.
The indirect connection to Elon M. Is too good to ignore.
Each gigafactory is doubles the current production of lithium in the world!:) so we are current producing a lot of lithium batteries for cars, phones and tablets but these gigafactories are HUGE in scale. My math is ok.:)
Going to start my own lithium mining company!!!!!!!!!!!!!!!!!!!
Having a problem with your math. How does 0 to 200 = 4000%? I thought division by zero is not allowed unless you want to consider infinity as the result. I hope and think SQM will increase the business gradually along with the market.
Not only that there is a growing fracas over the railroad shipping of crude. A few disasters have brought to the front the danger associated with energy rich products.
This is interesting because so far the oil people have tried to make a lot hay from the teslas fires as if a tank full of gas was as safe as a llolypop.
To boot, the oil fracking business is facing some ugly reality. It is intrinsically short term and saddled with expensive constant new drilling to maintain output. In plain english alternative energy should get a good boost out of the dissemination of the bloomberg report on the issue.
Word on the street is second largest iodine producer Cosayach had a court order imposed on them Wednesday to stop production at 2 mines due to illegal practices. Will mean prices go north.
That is a 4000 % increase in demand for lithium! SQM is the lowest cost producer of lithium on the planet! SQM IS GOING TO EXPLODE HIGHER WHEN THE FIRST GIGAFACTORY BREAKS GROUND!!:)