30.83 0.00 (0.00%)
After hours: 4:43PM EST
|Bid||30.83 x 800|
|Ask||30.75 x 800|
|Day's Range||30.18 - 30.83|
|52 Week Range||22.71 - 45.38|
|Beta (5Y Monthly)||1.15|
|PE Ratio (TTM)||25.37|
|Forward Dividend & Yield||1.01 (3.30%)|
|Ex-Dividend Date||Dec 04, 2019|
|1y Target Est||27.83|
Moody's Investors Service has downgraded to B2 from B1 Tianqi Lithium Corporation's corporate family rating (CFR) and the senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium. "The ratings downgrade reflects Tianqi Lithium's reduced financial flexibility as a result of its weakened capital structure, which in turn will raise refinancing risk, in particular with regard to the November 2020 maturity of part of the loan associated with its acquisition of a stake in Sociedad Quimica y Minera de Chile S.A. (SQM, Baa1 stable)," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer. The updated guidance includes an estimated RMB2.2 billion impairment charge related to its 25.9% stake in SQM, which Tianqi Lithium reports as long-term investment on an equity method basis.
(Bloomberg) -- After borrowing billions to fund an overseas expansion to ride a lithium boom, a collapse in prices has left one of the world’s top producers straining under a mountain of debt.Valued at more than $6 billion, Tianqi Lithium Corp.’s predicament highlights the risks of boom-and-bust cycles in commodity markets that can punish mistimed or over-extended ventures, even in sectors fated to become dominant.While long-term prospects for lithium are bullish as demand for electric-vehicle batteries booms, the sector is reeling from a prolonged price slump triggered by an explosion in supply and reduction of EV subsidies in China, the biggest auto market.Tianqi is staring down a $3.5 billion loan from China CITIC Bank that it used to buy a 24% stake in a Chilean rival in May 2018. About $2.3 billion of that is scheduled to come due in November, Moody’s Investors Service said in a report last month.The company’s $300 million offshore bonds sank the most on record last week amid reports that the giant miner was facing uncertainty over the repayment of just 300 million yuan ($43 million) of debt. They’ve since been drifting about 66 cents on the dollar, near an all-time low, amid continued concern about its financial health.It’s not just Tianqi feeling the pain. Top global producer Albemarle Corp. has halted plans to spend $1.5 billion on new capacity, while Livent Corp. is also reviewing its growth ambitions. In Australia, juniors Galaxy Resources Ltd. and Pilbara Minerals Ltd. have slashed production plans, blaming low prices and excess supply. And in Canada, aspiring producer Nemaska Lithium entered creditor protection last month after a strategic review.All of this is a response to a premature wave of new supply that flooded the market in the past two years, overwhelming even the growth in demand for the material used in rechargeable batteries. Prices have halved since their peak in May 2018, according to consultant Benchmark Mineral Intelligence.Tianqi’s business has been “dragged by very heavy refinancing needs,” said Clare Guo, credit desk analyst at Nomura International HK Ltd. Still, it has world-class resources and manages to maintain decent operations in spite of tumbling lithium prices, she said.The company said in a filing to the Shenzhen stock exchange Jan. 23 that it has transferred funds for a payment on the 300 million yuan onshore bond, puttable Feb. 1. It didn’t respond to calls and emails seeking comment before and during the Lunar New Year holiday in China, which has been extended because of the coronavirus outbreak.In early 2018, with prices soaring to multi-year highs amid a frenzy of interest in lithium assets, Tianqi clinched its deal to buy 24% of in Sociedad Quimica y Minera de Chile -- known as SQM -- for more than $4 billion. The tumble in prices since the acquisition has left Tianqi with a pile of debt and steadily shrinking profit.In April 2019, the company said its focus for the year was to reduce its asset-to-liability ratio to a “more reasonable level,” and highlighted that its gross margins and cash flows were healthy. While gross profit margins for the third quarter last year were 53%, it posted its first quarterly net loss in more than 5 years as debt repayments mounted. Net interest servicing climbed to 552 million yuan.The company in December raised about 2.93 billion yuan in a rights issue, less half the 7 billion yuan it was seeking to help pay down the load for the SQM purchase.About 41% of those new shares were purchased by Tianqi Group, the main shareholder and controlled by founder Jiang Weiping, along with related parties including Jiang’s wife, Zhang Jing, and son-in-law, according to a company filing.Moody’s last month cut Tianqi’s rating to B1 from Ba3, saying smaller-than-expected proceeds from the rights issue would result in slower de-leveraging and tighter liquidity. Total debt will remain about 7.5 times operating profit for the next 12 months, Moody’s estimated.“The negative ratings outlook continues to reflect the uncertainty related to Tianqi Lithium’s refinancing plans, weak liquidity position and weak operations,” Gerwin Ho, Moody’s lead analyst for Tianqi, wrote in a Dec. 23 note. Nevertheless, Moody’s said it expected the company will be able to roll over its debt with banks “given its strong market position.”Tianqi would be far from the first commodities company to splurge on assets at the top of a cycle, only to face a squeeze when prices collapse. A famous example was Rio Tinto Group’s debt-fueled purchase of Alcan Inc. in 2007, just before the global financial crisis sparked a decade of woes for the aluminum industry.“A surplus of lithium product production, increasing inventory levels and weaker than anticipated demand” from the electric vehicle sector in China and the U.S. pressured suppliers of the metal through the second half of 2019, according to Galaxy Resources Ltd., which said Jan. 23 it would cut its mining operations and production in Western Australia. The market will continue to be pressured by excess stockpiles throughout the early part of 2020, it said.There’s a potential better long-term outlook as many planned projects have stalled on a lack of funding, meaning the market may return to a deficit as demand builds from automakers by the middle of the decade, according to Galaxy.The SQM stake purchase was “based on strategic needs,” Tianqi said in a statement in June 2018. The investment will bring long-term stable returns and enhance Tianqi’s exposure to SQM’s world-class resources, it said. Headquartered in Chengdu, Sichuan Province, Tianqi also owns a 51% stake in the Greenbushes lithium mine in Western Australia.The lithium market is paying close attention to Tianqi because it took on so much debt to pursue the purchase when prices were very high, according to Daniel Chen, an analyst at consultancy CRU Group.“I think Tianqi thought the SQM transaction as a once-in-a-lifetime opportunity,” he said. “And if they don’t take the chance then it would never happen.”\--With assistance from Apple Lam, Crystal Chui and David Stringer.To contact Bloomberg News staff for this story: Martin Ritchie in Shanghai at firstname.lastname@example.org;Annie Lee in Hong Kong at email@example.comTo contact the editors responsible for this story: Phoebe Sedgman at firstname.lastname@example.org, Ramsey Al-RikabiFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Tianqi Lithium Corporation and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will...
Moody's Investors Service, ("Moody's") has assigned a Baa1 rating to Sociedad Química y Minera de Chile S.A.'s ("SQM") up to $500 million proposed senior unsecured notes. The rating of the proposed notes assumes that the final transaction documents will not be materially different from draft legal documentation reviewed by Moody's to date and assume that these agreements are legally valid, binding and enforceable. SQM's Baa1 ratings are supported by the company's sound market position in the lithium, iodine, potassium nitrate and thermos-solar salts markets, with significant cost advantages relative to industry peers as a result of its access to rich natural resources in northern Chile.
With 2019 drawing to a close, investors should carefully plot out their stocks to buy for January. For one thing, the holiday season typically provides folks with extra time to digest the events of the outgoing year and to strategize for the upcoming one. Given the many market drivers that we saw over the trailing 12 months, at least a few will carry over into 2020.Second, a phenomenon known as the "January Effect" may help bolster the case for compelling stocks to buy. This is a dynamic where the prior year's laggards find substantial positive momentum. One explanation is that fund managers sell out of their winners and shift the capital gains to presumably undervalued plays for favorable tax coverage. With a little bit of luck, this approach can set up your portfolio for tremendous success later in 2020.Third, if you previously haven't strategized for stocks to buy for January, this year may be the best time to do it. That's because 2020 is poised to become one the most eventful in recent memory. Obviously, the upcoming presidential election in November is a vital one for the country and our place in the world. And if we get a new president, it will surely reshape the present economy for better or for worse.InvestorPlace - Stock Market News, Stock Advice & Trading TipsFurthermore, we have several exciting industrial and technological developments that will continue to grow. This isn't just about speculating on 2020's winners; instead, many investments have long-reaching implications. * 10 Best Stocks to Beat the Market in 2020 With that, here are seven stocks to buy for January. Stocks to Buy for January: AT&T (T)Source: Shutterstock Typically known as a boring investment more geared toward retirement portfolios, AT&T (NYSE:T) made a strong case for being one of the stocks to buy for January. On a year-to-date basis, T stock has jumped a remarkable 36%. At least, that's remarkable for a giant lumbering telecom firm.But recently, MoffettNathanson's Craig Moffett took issue with T stock, labeling AT&T's TV division as a "cancer." That's an awfully strong word, but I can appreciate the sentiment behind Moffett's criticism. Typically, you shouldn't trust value created by an expensive acquisition. Furthermore, the streaming revolution makes AT&T's TimeWarner deal a worrying bet.However, I argued that streaming, too, has its challenges. More importantly, AT&T is currently one of few companies that has the capacity to rollout 5G competently. This transformative technology will shape the course of society, as it has myriad applications beyond just telecom. Therefore, I'm still liking T stock despite its flaws. Sociedad Quimica y Minera de Chile (SQM)Source: Shutterstock With so much emphasis on technology and the digitalization of everything, a mining firm like Sociedad Quimica y Minera de Chile (NYSE:SQM) may seem anachronistic. However, SQM stock could be one of the most important stocks to buy. And I'm not just talking about January but for many years to come.According to the company's website, SQM stock represents exposure to the world's largest, low-cost producer of lithium. As you know, lithium is a core element that's used in electric vehicles such as those made by Tesla (NASDAQ:TSLA) or Nio (NYSE:NIO).Admittedly, I'm not a big fan of these two names. However, we're seeing a dramatic push for green initiatives. Due to their clean footprint, EVs have generated considerable interest, especially among environmentalists. That alone could help lift SQM stock in the near to intermediate term.Plus, SQM stock was battered badly in 2019. However, shares appear to have formed a bottom. Therefore, SQM entices as one of the stocks to buy for January. Barrick Gold (GOLD)Source: Piotr Swat / Shutterstock.com For several years following the precious metals' rally in 2011, both the sector and related mining firms like Barrick Gold (NYSE:GOLD) have tantalized investors. Just a few years removed from the 2008 financial crisis, the economic and market recovery lacked credibility. Therefore, the case for gold made sense. However, the record-breaking performance of equities squashed that thesis, invariably hurting GOLD stock.But the upcoming new year and new decade may help change the long-term trajectory of GOLD stock. For one thing, the economic recovery -- though impressive -- still has vulnerabilities. The biggest example is the U.S.-China trade war. What experts initially thought was a quick war of words escalated into a nearly two-year conflict. Because tensions still remain, the fear trade is potentially viable.Furthermore, the U.S. government's fiscal picture is a mess. At time of writing, our national debt is over $23 trillion. Also, economists predict that by 2020, the federal budget deficit will balloon to $1 trillion. Am I suggesting building a bunker to protect against a societal meltdown? Far from it! But the ugliness augurs well for gold and GOLD stock. Lockheed Martin (LMT)Source: Ken Wolter / Shutterstock.com In what has got to be the most significantly bizarre geopolitical event ever, President Donald Trump met with North Korean dictator Kim Jong Un in 2018. This was the first time a sitting U.S. President met face-to-face with North Korea's supreme leader. Despite this diplomatic "breakthrough," I still supported the idea of buying Lockheed Martin (NYSE:LMT) and LMT stock.Why? North Korea has never come across as a reliable international partner. Furthermore, the Asia-Pacific region is a hotbed of potential military and economic conflict. Not only do we have an assertive China in the region, Russia is also rearing its ugly head. Thus, LMT stock in many ways represents the muscle that our government flexes.In addition, Trump's much-hyped diplomatic victory isn't panning out the way he originally hoped. In fact, military and intelligence officials are concerned that North Korea may launch more intercontinental ballistic missiles. It looks like we're going to have another year of stare downs and fierce rhetoric. Therefore, put LMT stock on your list of stocks to buy for January (and beyond). Cyberark Software (CYBR)Source: photobyphm / Shutterstock.com If you're looking for no-brainer stocks to buy for January, the cybersecurity industry offers multiple compelling names. Thanks to digitalization trends, virtually all of our devices are now connected to the internet. But because of this unprecedented connectivity, bad actors have sought to advantage this situation. That's one of the main reasons why Cyberark Software (NASDAQ:CYBR) stock moved significantly higher in 2019.However, I believe CYBR stock has more room to run in 2020 and beyond as the scope of cyberattacks become more prominent and painful. Experts in the field estimate that by next year, "the average cost of a data breach will exceed $150 million." Globally, we could see cyberattacks cause fiscal damage that runs into the multiple trillions.That's not all. As I mentioned above with AT&T, the 5G rollout is among the most significant technological developments. But new tech also means new risks. Combined with the Internet of Things, hackers have ample opportunities for nefarious purposes. Thus, I really like CYBR stock and its ilk for their almost guaranteed relevancy. Mylan (MYL)Source: sylv1rob1 / Shutterstock.com As a generics drug specialist, Mylan (NASDAQ:MYL) offers a critical bridge between patients and their therapies. That's because brand name drugs are often exorbitantly expensive, especially for difficult-to-treat conditions or for rare diseases. Historically, MYL stock skyrocketed to incredible heights thanks to their effective but cheaper copycat products.But now, legislative committees are eyeballing the generics industry, and not in a good way. Over the last few years, U.S. lawmakers probed Mylan, along with Teva Pharmaceuticals (NYSE:TEVA) and privately held Heritage Pharmaceuticals for price fixing. Subsequent investigations reveal a seemingly carefully controlled system of anticompetitive agreements and price gouging.While the controversy has arguably impacted Teva Pharmaceuticals the most, MYL stock also took a beating. Optically, this looks like an assault against desperately dependent patients. Clearly, Mylan has a serious public relations battle to overcome.Although MYL stock is not the most popular investment right now, it may turn out to be one of the more profitable. First, shares have never really recovered its implosion in May 2019. Second and cynically, we need Mylan and companies like it. Otherwise, patients will not stand a chance of getting relatively reasonably priced drugs and treatments. Cronos Group (CRON)Source: Shutterstock There's really no way around it: the legal cannabis sector was one of the ugliest and most disappointing market segments of 2019. Even well-backed names like Cronos Group (NASDAQ:CRON) couldn't escape from the bloodshed. What was once a promising start for CRON stock quickly devolved into a nightmare. Understandably, most folks want to avoid marijuana-related companies like the plague.However, if you can stomach the turbulence that will surely impact this market, Cronos may be one of the more interesting contrarian picks for stocks to buy for January. First, publicly traded cannabis companies have likely hit every branch of the ugly tree. As such, speculators may be more willing to gamble on CRON stock.Second, the world is generally moving toward cannabis tolerance, if not outright acceptance. Legalization will be a huge issue in the upcoming 2020 election. Further, CNBC reported growing botanical momentum in Asia, which is traditionally a conservative region.I get that investors shouldn't dismiss the vulnerabilities in names like CRON stock. At the same time, the fundamental picture in legal marijuana is also incredibly robust.As of this writing, Josh Enomoto is long T stock and gold bullion. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 2019 Losers That Will Be 2020 Winners * 7 Safe Dividend Stocks for Investors to Buy Right Now * 5 Artificial Intelligence Stocks to Consider The post 7 Stocks to Buy for January and Beyond appeared first on InvestorPlace.
Moody's Investors Service ("Moody's") has downgraded to B1 from Ba3 Tianqi Lithium Corporation's ("Tianqi Lithium") corporate family rating and the senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium.
Based on the fact that hedge funds have collectively under-performed the market for several years, it would be easy to assume that their stock picks simply aren't very good. However, our research shows this not to be the case. In fact, when it comes to their very top picks collectively, they show a strong ability […]
Today we'll look at Sociedad Química y Minera de Chile S.A. (NYSE:SQM) and reflect on its potential as an investment...
SANTIAGO, Chile , Nov. 20, 2019 /PRNewswire/ -- Highlights SQM reported net income (1) for the nine months ended September 30, 2019 of US$211.2 million. Revenues for first nine months of 2019 were US$1,471.4 ...
Moody's Investors Service ("Moody's") assigned today a Ba1 rating to Empresa Electrica Cochrane SpA's (Cochrane, SPV or Issuer) proposed issuance of up to US$430 million of 7.5 year senior secured notes due in 2027. This is the first time Moody's assigns ratings to Cochrane. Proceeds from the secured notes will be used largely to repay Cochrane's existing project finance debt of around $864 million.
How do you pick the next stock to invest in? One way would be to spend days of research browsing through thousands of publicly traded companies. However, an easier way is to look at the stocks that smart money investors are collectively bullish on. Hedge funds and other institutional investors usually invest large amounts of […]
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Sociedad Quimica y Minera de Chile S.A. New York, September 04, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Sociedad Quimica y Minera de Chile S.A. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Moody's Investors Service has downgraded Tianqi Lithium Corporation's corporate family rating and the senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium to Ba3 from Ba2. "The downgrades reflect Moody's expectation that Tianqi Lithium's capital structure will remain weak and its leverage will stay elevated over the next 12 months, because of weaker operating performance," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer.
[Editor's note: "10 Lithium Stocks to Buy Despite the Market's Irrationality" was previously published in July 2019. It has since been updated to include the most relevant information available.]No matter how innovative or utilitarian a new platform may be, all modern technologies require a catalyst to operate. For most devices, this requirement translates into a lithium-based power source. Nowadays, almost everything we use runs on the silver-white metal. Logically, the idea of buying lithium stocks is a frequently made suggestion.However, the markets sometimes deploy their own logic, which seemingly runs counter to the fundamentals. For instance, industry demand for lithium remains robust, and is likely to increase as electronics manufacturers pump out smart devices. Yet the benchmark exchange-traded fund Global X Lithium ETF (NYSEARCA:LIT) is down approximately 28% over the past year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Best Tech Stocks to Buy Right Now Why the disconnect between lithium stocks and underlying industry demand? Mostly, experts in the field forecast an overabundance of supply due to mining companies ramping-up production. Additionally, last year Morgan Stanley analysts predicted a massive drop in the commodity's price over the next few years that could outpace even tremendous demand from electric-vehicle companies.Of course, the other major concern is a more recent development: The escalating U.S.-China trade war. I say escalating because while the two sides are talking, we're seeing no substantive evidence of a potential deal. Continuing rhetoric isn't conducive to the success of lithium stocks.Let's not forget that China has a massive stockpile of lithium. Furthermore, they regard the commodity as "white petroleum," and are actively seeking to dominate its supply chain. Although opinions vary on this dynamic, in my view, that's net bullish for lithium stocks due to the tech industry's ever-rising demand.With that in mind, here are my ten picks for lithium stocks to take advantage of the market's irrationality. Albemarle (ALB)Several of the lithium stocks that analysts commonly discuss are admittedly speculative affairs. As a result, the downturn in the lithium market has severely and disproportionately impacted the industry's direct competitors. But for a solid, renowned organization like Albemarle (NYSE:ALB), the selloff presents a viable contrarian opportunity.Source: fdecomite via Flickr (Modified)I'm not going to beat around the bush: ALB stock has taken a massive beating, even compared to the lithium industry's bloodbath. Over the past year, shares have lost 35% in the markets.That said, I'm encouraged with some positives in the company's financials. After absorbing a disappointing dip in revenues in 2016, Albemarle bounced back the following year. The growth continued in 2018 with revenues growing from $3.07 billion to $3.37 billion. ALB reported Q2 earnings per share that beat analysts' consensus estimate and revenue that came in slightly below the average estimate. But it raised its full-year EPS guidance.Despite geopolitical saber-rattling, the outlook for lithium remains strong. Experts forecast nearly a 9% lift in global demand through 2019. Thus, the present weakness in ALB stock is a great entry point. Sociedad Quimica y Minera (SQM)Due to its sheer dominance in the sector, no discussion about lithium stocks is complete without mentioning Sociedad Quimica y Minera (NYSE:SQM). SQM is based in Chile, which according to CNBC enjoys the world's largest lithium reserves. In fact, CNBC was quite emphatic about this point, noting that no other nation comes close to Chile's 7.5 million metric tons of the hotly demanded metal. Click to Enlarge Source: Shutterstock Unfortunately, as with many other lithium stocks, SQM suffers from a divergence between fundamental bullishness and technical trading. Over the past year, shares are down 42%.But what's truly compelling about SQM stock is the general stability of the underlying company's host nation. Historically, relations between the U.S. and Chile are favorable. While that might have changed over the past two-and-a-half years, the U.S. still represents a critical trading partner to Chile. * 7 Best Tech Stocks to Buy Right Now When you're dealing with lithium stocks, you're already in a volatile market. With SQM, you can at least take away some political variables. Tesla (TSLA)For some time, Tesla (NASDAQ:TSLA) was one of my favorite tech firms to discuss. Much of my enthusiasm had to do with CEO Elon Musk, a man who consistently thinks out of the box. Click to Enlarge Source: Shutterstock But for owners of TSLA stock, I'm sure many of them wish he would stay in the box occasionally. For all the positives that Tesla delivered to the technological and scientific communities, the CEO made multiple unforced errors.You can take a look at the chart for TSLA stock and see what those errors -- along with a general lack of focus -- have done. It's not pretty.In the spirit of full transparency, I've lost patience with Musk. I also have some questions about the effectiveness of Tesla vehicles.That said, if you want to speculate on lithium and battery stocks, you may want to consider TSLA. Recently, Musk suggested that Tesla may get into the lithium-mining business to support the company's larger-scale growth plans.Out of the crazy things Musk has said recently, this is one that finally makes sense. Although I'm not entirely convinced, commodity bulls may find that this is the perfect turnaround narrative. Panasonic (PCRFY)Speaking strictly from a product fanbase perspective, few companies generate as much buzz as the aforementioned Tesla. I've repeatedly called Elon Musk eccentric, but that same eccentricity inspires him to create aesthetically and technologically stunning cars. However, many folks might not appreciate just how important of a role Panasonic (OTCMKTS:PCRFY) plays in Tesla's success. Click to Enlarge Source: Shutterstock When most people hear the name Panasonic, they immediately think about consumer-electronic devices. While that's very much part of their business and legacy, the company is also shifting heavily toward lithium-based technologies.Panasonic and Tesla developed a strong if somewhat under-appreciated partnership. Notably, Panasonic manufactures Tesla vehicles' lithium-ion batteries at Tesla's vaunted Gigafactory. * 7 Best Tech Stocks to Buy Right Now More importantly, all signs point to the two companies continuing their relationship into other business ventures. Call it a corporate "bromance" that looks to be a viable opportunity for long-term gains. This idea gets more credibility considering that PCRFY has suffered the same fate as other lithium and battery stocks. PCRFY is down roughly 5% since the year-ago period.But if Tesla manages to get out of its funk, I can see PCRFY tagging along for the ride. Additionally, Panasonic can use its acumen with other key tech-based partnerships.Livent (LTHM)In the entertainment world, audiences look forward to spin-offs to provide further insights into favorite plotlines and characters. But within the investing segment, spin-offs are touch-and-go affairs. Click to Enlarge Source: FlickrJust take a look at Livent (NYSE:LTHM). Formerly the lithium arm of FMC (NYSE:FMC), LTHM stock began life as its own publicly traded entity in October 2018. To put it mildly, results are not favorable, with shares down a whopping 63% since the initial public offering.But much of that pain didn't start until May, when Livent disappointed for its first-quarter earnings report. Management cut its full-year revenue and profit forecasts due to weak demand, particularly for its higher-end lithium products. Even worse, it looks as if there will be a class-action lawsuit tied to the company's IPO.But lithium demand broadly is not going away. From smaller electronics to large batteries, everyone is diving into this sector. Therefore, LTHM stock attracts as a speculative contrarian opportunity. Power Metals (PWRMF)Contrary to what some may believe, not all lithium-mining processes are the same. Currently, the two most popular methods are lithium brines and lithium-cesium tantalum pegmatites or more commonly referred to as "hard rock." Click to Enlarge Source: Shutterstock Lithium brines represent the most popular method to which most lithium stocks are levered. However, the drawback is that the process is vulnerable to weather-related issues.Given that industry demand for the metal is constantly rising, unfavorable weather could severely impact production. To get around this issue, lithium miners are exploring hard rock, which is essentially weather-independent.One mining company that's putting the hard-rock concept to the test is Power Metals (OTCMKTS:PWRMF). With several projects spread around resource-rich Canada, Power Metals aims to be a significant provider of lithium. Plus, the company's geographically stable region is a big positive for PWRMF stock. * 7 Best Tech Stocks to Buy Right Now That's the good news. The not-so-great news is that PWRMF is a genuine, over-the-counter penny stock. Shares are down 68% over the past year, which tells you all you need to know. Still, if you're looking for a potentially explosive contrarian play among lithium and battery stocks, Power Metals is it. Just bet carefully and responsibly. Lithium Americas (LAC)Lithium Americas (NYSE:LAC) is a direct but completely speculative gamble on the growth potential of lithium stocks. While LAC earned itself a healthy dose of street cred with its joint venture with Sociedad Quimica y Minera, the company has no production assets. Click to Enlarge Source: Shutterstock That's not necessarily a deal-breaker as it has legitimate plans to attain those assets. Still, you're taking a risk that management will follow through.And while the markets have not been kind to lithium stocks, LAC has already climbed back into gain territory adding more than 18 percent year over year.I believe that analysts' consensus bearishness toward the lithium industry is overplayed. Yes, commodity prices fluctuate year-to-year for various reasons. However, the demand for lithium is broadly trending higher.It's not just electric vehicles and other physically imposing technologies that require lithium. Consider that the burgeoning e-cigarette or vaporizer market requires a healthy lithium supply chain to keep running.So long as the drive for innovation exists, so too will lithium demand. This adds some measure of confidence to the otherwise speculative LAC stock. Galaxy Resources (GALXF)Most direct plays in the lithium sector invariably involve mining stocks. Even in the best circumstances, commodity miners aren't known for their stability and reliability. That said, one of the better ways to help mitigate this risk is to seek companies with diversified portfolios. Galaxy Resources (OTCMKTS:GALXF) is one such example. Click to Enlarge Source: Shutterstock Galaxy's primary claim to fame is its Sal de Vida project, located in northwest Argentina. Situated in what industry experts term the "lithium triangle", the area produces more than 60% of global annual lithium supply.Beyond that, GALXF has projects in its native Australia, as well as Canada. Both regions are geopolitically stable, eliminating a major headache for investors. * 7 Best Tech Stocks to Buy Right Now Regarding risk factors, you should note that GALXF is now a legitimate penny stock with a share price under $1. During the past year, shares have plummeted over 85%. Some of that is due to the volatility of a relatively new market.Certainly, that's a distraction for Galaxy and other lithium stocks. However, do note that automakers like Toyota (NYSE:TM) could help pick up the slack. Toshiba (TOSBF)Similar to Panasonic, Toshiba (OTCMKTS:TOSBF) is primarily known for its electronic devices, particularly its laptop computers. While their primary businesses are unlikely to change, Toshiba is shifting resources heavily toward lithium technologies. It has already achieved substantial success with high-power, quick-recharging batteries, with more innovations in the pipeline. Click to Enlarge Source: Shutterstock And while TOSBF is a legitimate play on lithium-based battery stocks, its multi-varied product portfolio affords it volatility protection. Shares are up roughly 8% year-to-date, despite taking a severe tumble beginning in May.The other advantage for Toshiba is that the company has suffered from prior missteps. Having taken the ugliness out of the way, the company is on a recovery path.As such, TOSBF offers meaningful exposure to lithium while effectively acting as a hedge. Pilbara (PILBF)Taking a cue from other lithium stocks, Pilbara (OTCMKTS:PILBF) has absorbed a beating. On a YTD basis, PILBF stock is down 33%. Over the trailing 52-week period, the Australian lithium-tantalum miner has dropped a staggering 59%. Click to Enlarge Source: FlickrOf course, this specific mining segment is in a tough spot. While demand is broadly rising, economic tensions between the U.S. and China cloud matters. That conflict has hurt automotive forecasts for EVs, which has deflated sentiment for lithium stocks.Still, despite the ugliness around PILBF stock, I like its potential as a high-risk, high-reward opportunity. Pilbara gets its name from Australia's resource-rich Pilbara region.And the company's Pilgangoora Project sits atop one of the largest lithium-ore deposits in the world. * 7 Best Tech Stocks to Buy Right Now A major plus for PILBF is that its key mining project is near established infrastructure. That means it can get its products out to port and feed global demand when it returns.It's a long shot, but PILBF stock features an intriguing narrative, especially at these deflated prices.As of this writing, Josh Enomoto was long TOSBF. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Apple Should Consider Buying * 7 Beaten-Up Housing Stocks Due for a Bounce Back * Take Buffett's Advice: 5 Vanguard Funds to Buy The post 10 Lithium Stocks to Buy Despite the Market's Irrationality appeared first on InvestorPlace.
SANTIAGO, Chile , Aug. 21, 2019 /PRNewswire/ -- Highlights SQM reported net income for the six months ended June 30, 2019 of US$150.7 million. Earnings per share totaled US$0.57 for the first half of ...
Sweden is turning its gaze towards Peru and other South American countries for lithium tie-ups amid a global race to lock in supply of the "white gold" metal that is key for the batteries that power electric vehicles. A senior trade official from the Scandinavian nation told Reuters by phone that firms in Sweden - which is making a push in such batteries is home to global car brand Volvo - were looking for alliances with regional lithium and copper producers. Governments and automakers around the world, with an eye on huge expected demand for electric cars, are looking to seal tie-ups for the light metal, including in the so-called "lithium triangle" centered on Chile, Bolivia and Argentina.
Moody's Investors Service has assigned a Ba2 corporate family rating to Tianqi Lithium Corporation and has withdrawn the company's Baa3 issuer rating. At the same time, Moody's has downgraded the senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium to Ba2 from Baa3.