|Bid||32.92 x 800|
|Ask||32.95 x 800|
|Day's Range||32.86 - 33.67|
|52 Week Range||32.86 - 56.49|
|Beta (3Y Monthly)||0.51|
|PE Ratio (TTM)||19.69|
|Forward Dividend & Yield||2.44 (6.86%)|
|1y Target Est||49.72|
Editor's note: This story was previously published in January 2019 and has since been updated and republished.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 more than 18% over the past year.InvestorPlace - Stock Market News, Stock Advice & Trading TipsWhy the disconnect between lithium stocks and underlying industry demand? Mostly, experts in the field forecasted 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. * 7 Energy Stocks to Buy to Light Up Your Portfolio The bearish prognostications occurred in the first two months of this year. Unfortunately, lithium and lithium-based battery stocks have largely failed to recover from the sentiment fallout. Recently, though they have begun their slow return, adding a little more than 1% so far this year.Granted, the extreme negativity makes this sector incredibly risky. But I also want to remind readers that forecasts are ultimately opinions. They may be well-crafted or well-analyzed opinions, but they're still non-factual expectations of future events.I choose to rely more heavily on actual data. The abundance of evidence demonstrates that lithium demand is increasing in virtually every corner of the broad, technological spectrum. Perhaps mining production could outpace demand. But for now, lithium continues to be among the most highly requested industrial commodities.Here are my ten picks for lithium stocks to take advantage of the market's irrationality.Source: Shutterstock 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.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 nearly 23% 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. Should the Albemarle FY2019 Q1 report disappoint, the company will still remain on the upswing.As industry demand is only going to get stronger, Albemarle's present weakness is a great entry point.Source: Shutterstock Sociedad Quimica y Minera (SQM)For 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.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 32%. At the same time, the worst of the bearishness appears to have subsided. Since the beginning of 2019, SQM is down 5.7%. * 7 Stocks to Buy That Ought to Buy Back Shares One risk factor to watch out for is sales growth. In its last earnings report in Q4, the mining company delivered $565 million, which was$10 million down from the year-ago quarter. Obviously, Wall Street will want to see significant improvement in 2019 (SQM reports May 22).That said, SQM's position as a lithium production leader should bode well for the future, if you're willing to be patient.Source: Tesla Tesla (TSLA)If you've followed market news over the past few months, you're well aware that sentiment toward Tesla (NASDAQ:TSLA) was poor. Primarily, questions about the company's cash burn, and its history of making big promises but failing to deliver took a heavy toll on the investment community. Plus, CEO Elon Musk's strange and rude behavior didn't do any favors for TSLA stock.Recently, though, the company announced it would raise capital sending it into another period of volatility. It's one that the company will come through, though. Plus with prices off a little more than 15% so far this year, Tesla is getting even more attractive.I don't want to speak too early, but for me, Tesla is finally back on track, even if the markets don't see it yet.Source: Shutterstock 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.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 A-Rated Stocks That Are Under $10 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 36% since the year-ago period.But especially once things shake out for Tesla, I believe Panasonic will latch on for the ride up.Source: Shutterstock FMC (FMC)As one of the leading lithium and battery stocks in the markets, FMC (NYSE:FMC) is a must-watch name if you're interested in this sector. But admittedly, the past year hasn't panned out too well for the company; FMC shares were pretty much flat year-over-year after taking a 12% nosedive at the end of 2018.But the overall poor sentiment in 2018 could change very quickly in 2019. The company beat EPS consensus in Q4 and things look good as FMC gets ready to report its Q1 2019 earnings.Management stated that the primary catalyst for the profitability boost was its 2017 buyout of DowDuPont's (NYSE:DWDP) agricultural assets. But also noteworthy were lithium sales, which have witnessed a resurgence.Source: Shutterstock 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."Lithium brines represent the most popular method, but 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. * 7 Companies Apple Should Consider Buying 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.That's the good news. The not-so-great news is that PWRMF is a genuine, over-the-counter penny stock. Shares are down 80% 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.Source: Shutterstock Lithium Americas (LAC)Lithium Americas (NYSE:LAC) is a direct but completely speculative gamble on the underlying sector's growth potential. While LAC earned itself a healthy does of street cred with its joint venture with Sociedad Quimica y Minera, the company has no production assets.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 taken the brunt of the damage. Year-over-year, shares have tanked 30%. Clearly, this is not an investment for the faint of heart!Having said that, I believe that analysts' consensus bearishness toward the lithium industry is overplayed. Yes, commodity prices fluctuate year-to-year for various reasons. However, 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.Source: Shutterstock 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.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 Dark Horse Stocks You Really Need to Look at for 2019 Regarding risk factors, you should note that GALXF is essentially a penny stock with a share price just over $1. Furthermore, its performance reflects the volatility associated with cheap equities, as GALXF has plummeted from a $3.39 share price in the markets over the past 18 months.If you're willing to take the chance, bearishness in GALXF has slowed significantly. As a high-risk, high-reward gamble on the lithium industry, Galaxy Resources is an intriguing idea.Source: Shutterstock 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. They have already achieved substantial success with high-power, quick-recharging batteries, with more innovations in the pipeline.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 18% YTD, which is a rarity in this sector right now.The other advantage for Toshiba is that the company has suffered from prior missteps. Having got 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.Source: Shutterstock Fujitsu (FJTSY)Japanese tech firm Fujitsu (OTCMKTS:FJTSY) is one of the most respected names in computers and consumer electronics. However, some of their best innovations recently have focused on lithium batteries. For instance, last year, Fujitsu developed a high-voltage lithium battery that doesn't require cobalt materials, which have certain structural disadvantages.Going along with the trends witnessed in other lithium and battery stocks, FJTSY is currently enduring a poor year. Shares are basically flat YTD. That said, FJTSY appears to have hit a bottom last year. This year it already is up nearly 20 percent and going strong. * 7 Cloud Stocks to Buy Now One of the biggest risk factors for Fujitsu is that it's a Japanese company; like its peers, you must have some faith in Japan's economic recovery plan. However, some tangible positives exist, including steadily rising revenues and a fairly solid balance sheet.As of this writing, Josh Enomoto is 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 Compare Brokers The post 10 Lithium Stocks to Buy Despite the Market's Irrationality appeared first on InvestorPlace.
Wesfarmers Ltd's bid for Australia's Kidman Resources undervalues the lithium miner, analysts said on Friday, reflecting the financing difficulties the sector faces even as electric car makers warn of raw material shortages. Wesfarmers offered a 47 percent premium for Kidman, which is developing the Mount Holland project in Western Australia through a joint venture with battery chemicals maker Sociedad Quimica y Minera de Chile S.A. (SQM). Prospects for lithium demand look strong over the next decade as governments worldwide set ambitious targets to increase electric vehicle sales.
Moody's Investors Service ("Moody's") has assigned a Baa1 rating to Sociedad Quimica y Minera de Chile S.A.'s ("SQM") up to $450 million proposed senior unsecured 10-year 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.
Moody's Investors Service says that Tianqi Lithium Corporation's (Baa3 negative) proposed rights issue -- once it completes -- is credit positive, but will have no immediate impact either on its Baa3 issuer rating or the Baa3 senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium. "The proposed rights issue, if completed, is credit positive for Tianqi Lithium because it provides equity funding to lower the company's debt level," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer. On 23 April 2019, Tianqi Lithium received approvals from its shareholders on a rights issue that could raise proceeds of up to RMB7 billion.
After a terrible year in 2018, lithium is about to make a major comeback, and new mining technology is unearthing the precious battery metal faster than ever before
The elite funds run by legendary investors such as David Tepper and Dan Loeb make hundreds of millions of dollars for themselves and their investors by spending enormous resources doing research on small cap stocks that big investment banks don't follow. Because of their pay structures, they have strong incentives to do the research necessary […]
Lithium stocks have been volatile in recent years, though the electric vehicle revolution means that demand for the metal should be strong for many years.
Interested in lithium stocks? This face-off should help you make investment decisions in this space, whose growth is being driven by the increasing popularity of EVs.
Albemarle Ups Its Quarterly Dividend for the 25th Straight Year(Continued from Prior Part)Albemarle’s dividend yield At the close of market on March 14, Albemarle (ALB), one of the biggest lithium producers, had a dividend yield of ~1.75%.
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.
POINT ROBERTS, Wash. and DELTA, British Columbia, March 04, 2019 -- Investorideas.com, an investor news source covering lithium stocks, issues a snapshot looking at key trends.
SANTIAGO, Chile , Feb. 28, 2019 /PRNewswire/ -- Sociedad Química y Minera de Chile S.A. (SQM) (NYSE: SQM; Santiago Stock Exchange: SQM-B, SQM-A) reported earnings today for the twelve months ended December ...
Moody's Investors Service has confirmed Tianqi Lithium Corporation's Baa3 issuer rating and the Baa3 senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium. The ratings outlook is negative. This rating action concludes the ratings review initiated on 18 May 2018.
Before we spend many hours researching a company, we’d like to analyze what insiders, hedge funds and billionaire investors think of the stock first. We would like to do so because the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of […]
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return Read More...