SQM - Sociedad Química y Minera de Chile S.A.
| Previous Close | 26.01 |
| Open | 26.35 |
| Bid | 26.96 x 1000 |
| Ask | 27.00 x 800 |
| Day's Range | 26.34 - 26.99 |
| 52 Week Range | 25.61 - 48.80 |
| Volume | 532,606 |
| Avg. Volume | 743,212 |
| Market Cap | 7.067B |
| Beta (3Y Monthly) | 0.71 |
| PE Ratio (TTM) | 17.38 |
| EPS (TTM) | 1.54 |
| Earnings Date | N/A |
| Forward Dividend & Yield | 1.96 (7.53%) |
| Ex-Dividend Date | 2019-06-06 |
| 1y Target Est | 41.70 |
- InvestorPlace
10 Lithium Stocks to Buy Despite the Market’s Irrationality
Editor's note: This story was previously published in June 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 approximately 19% over the past year.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 10 Stocks to Buy From This Superstar Fund 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 nearly 20% 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 Q1 earnings-per-share that was in-line with analysts' consensus estimates and revenue that beat the average outlook.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 over 33%.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 Defense Stocks to Buy to Fortify Your Portfolio 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. * 10 Tech Stocks That Are Still Worth Your Time (And Money) 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 59% 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 Stocks Top Investors Are Buying 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 53% 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. * 9 Retail Stocks Goldman Sachs Says Are Ready to Rip 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 nearly 24%. Over the trailing 52-week period, the Australian lithium-tantalum miner has dropped a staggering 39%. 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 Dependable Dividend Stocks to Buy 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.
- Reuters
Sweden seeks lithium tie-ups in South America amid 'white gold' rush
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
Tianqi Lithium Corporation -- Moody's assigns Ba2 CFR to Tianqi Lithium and withdraws Baa3 issuer rating; outlook negative
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.
- Reuters
UPDATE 1-Chile to clean up rules for lithium industry to boost production
Chile´s Mining Ministry said on Tuesday it would release in "the coming weeks" a plan to clarify rules around its lithium industry to maintain its global share of output amid spiraling demand for the coveted battery metal. At a gathering of lithium investors in Santiago, Mining Minister Baldo Prokurica said the administration of center-right President Sebastian Pinera would push both state and private investment to double Chile´s production to 230,000 tonnes of lithium carbonate equivalent per year by 2023. Chile´s existing policy toward lithium has been criticized as confusing and uninviting to newcomers.
- Reuters
Chile to push both private and public investment in lithium
Chilean Mining Minister Baldo Prokurica said on Tuesday the government of the South American mining powerhouse would favor neither private nor state investment as it seeks to ratchet up output of its world-leading reserves of ultralight battery metal lithium. At a gathering of lithium investors in Santiago, Prokurica said the administration of center-right President Sebastian Pinera would work to ensure a combination of both state and private investment to double Chile´s production to 230,000 tonnes of lithium carbonate equivalent per year by 2023.
- Moody's
Tianqi Lithium Corporation -- Moody's reviews Tianqi Lithium's Baa3 ratings for downgrade
Moody's Investors Service has placed on review for downgrade the Baa3 issuer rating of Tianqi Lithium Corporation, and the Baa3 senior unsecured rating on the bonds issued by Tianqi Finco Co., Ltd and guaranteed by Tianqi Lithium. "The review for downgrade reflects Tianqi Lithium's slower than expected deleveraging, due to delays in executing its equity financing plan and a weaker operating performance amid volatility in lithium chemical prices," says Gerwin Ho, a Moody's Vice President and Senior Credit Officer. Tianqi Lithium's elevated financial leverage following its acquisition of a 23.8% stake in Sociedad Quimica y Minera de Chile S.A. (SQM, Baa1 stable) has weakened the company's capital structure and financial flexibility.
Motley FoolSociedad Química y Minera de Chile S.A. (SQM) Q1 2019 Earnings Call Transcript
SQM earnings call for the period ending March 31, 2019.
- CNBC
Stocks making the biggest moves midday: L Brands, Copart, Chipotle & more
Check out the companies making headlines midday Thursday:L Brands LB — L Brands surged 12.8% after the parent company of Victoria's Secret and Bath & Body Works reported first-quarter earnings that surpassed expectations .
- Associated Press
SQM: 1Q Earnings Snapshot
The Santiago, Chile-based company said it had profit of 31 cents per share. The results fell short of Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research ...
- PR Newswire
SQM Reports Earnings For The Three Months Ended March 31, 2019
Santiago Stock Exchange: SQM-B, SQM-A) reported earnings today for the three months ended March 31, 2019 of US$80.5 million (US$0.31 per share), a decrease from US$113.8 million (US$0.43 per share) reported for the three months ended March 31, 2018. SQM's Chief Executive Officer, Ricardo Ramos, stated: "We reported earnings for the three months ended March 31, 2019 of US$80.5 million. In line with our expectations, iodine and potassium chloride prices increased significantly compared to the same period last year, and sales volumes grew in the iodine, specialty plant nutrition and lithium business lines.
- Investopedia
Why Lithium Stocks Are Plunging Amid Electric Car Boom
Demand for lithium from automakers to smartphone producers is rising, but lithium stocks are plunging.
- GuruFocus.com
Is This High-Yield Lithium Stock a Buy?
This major lithium producer is trading near multiyear lows
- Reuters
Wesfarmers' soft bid for Kidman spotlights lithium's financing issues
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
Sociedad Quimica y Minera de Chile S.A. -- Moody's assigns Baa1 rating to SQM's up to $450 million proposed notes; stable outlook
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
Tianqi Lithium Corporation -- Moody's: Tianqi Lithium's ratings unaffected by proposed rights issue
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.
Oilprice.comIs This A Gamechanger For The Lithium Industry?
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
- Motley Fool
Better Buy: Albemarle vs. Sociedad Quimica y Minera
They're two of the world's largest lithium producers, but one is better positioned for the future.
- Insider Monkey
Here’s What Hedge Funds Think About Sociedad Química y Minera de Chile S.A. (SQM)
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 […]
- Motley Fool
Who Are Tesla's Lithium Suppliers?
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.
- Motley Fool
Albemarle vs. SQM vs. Livent: Which Had the Best Lithium Results in Q4?
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.
- Market Realist
How Is Albemarle’s Dividend Yield Trending?
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
Tianqi Lithium Corporation -- Moody's announces completion of a periodic review of ratings of Tianqi Lithium Corporation
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.
- GlobeNewswire
New Lithium Supply - From Pilot Plants to Commercialization; Companies Ramping up for Global Demand of the 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.
