Today I posted my two-hundred-and-seventy-second YouTube Video: Quick Pick Albemarle
Want to grow your portfolio and protect it too? In the toughest investing market in 40 years?
Grab my eBook, Your Best Investing Strategy for the Next 5 Years: Free download for subscribers to JubakAM.com. Just click on the image in the right margin of the JAM home page.
Today’s Quick Pick is Albemarle Corporation (NYSE: ALB), a lithium producer. Lithium demand continues to rise with electric vehicles and rechargeable batteries finding expanding and new markets. Lithium producers have had a difficult time meeting demand–and projections say the demand gap is going to expand– and the price of Lithium has shot up. However, Sociedad Quimica y Minera de Chile (NYSE: SQM), and Albemarle Corporation (NYSE: ALB), two Chilean lithium producers, took a hit recently due to political risks. Chile’s president, Gabriel Boric announced a plan on April 22 to nationalize the country’s lithium resources, sending the lithium stocks plunging. However, investors may have overlooked some key points in the announcement: the country will honor existing leases (SQM’s leases expire in 2030, and Albemarle’s leases expire in 2043) and this plan still has to be passed by the Chilean legislature. Recent votes have favored the right in Chile and Boric’s party may not have the votes (or inclination) in the current legislature to pass this proposal. A right-wing government would likely be unhappy with the idea of nationalizing a previously private sector. (Chile’s lithium resources already belong to the state with these companies holding time-limited production leases.) Right now, with Albemarle’s longer lease and changing Chilean politics, this is a good time to get in on Albemarle and its expanding lithium production from mines in Australia and the United States. (Only 30% of its revenue comes from Chile.)
Here’s the link: