Another one I have been dabbling with. Don’t own it presently, but started with it in late ‘19. Again, in and out multiple time. Fair value of this one - today, is probably bit over $300, but will likely hit $200 again before reaching that. We shall see, …
C.
Albemarle at this time is primarily a lithium stock. It once was a paper company, later became Ethyl Corporation, leader in supplying tetraethyl lead for leaded gasoline. And now its lithium.
A strong believer in the idea that good management can run any business. And flexible in redirecting assets.
SQM is the leader in lithium. If you plot prices side by side, SQM usually leads but they are virtually twins. Both produce primarily in Chili.
There is also LIT, a lithium etf, mostly Albemarle but heavy in Chinese players. They keep telling us China is a leader in purification of crude lithium. But I’m not sure of the details.
LIT seems to be lagging for now.
As shown in my CAPs portfolio, I bought SQM in May. Its up a little but not a barnburner. I bought Tesla at the same time. Its up 36% vs 2% for SQM.
I bought Tesla when its PE based on estimated future earnings fell below 40. I got it for 670 against a low of 640. So far so good. Its one of my few recent successes.
C, Paul is the guy around here who has a very good handle on chemicals, agriculture, and mining. He’s a perfect companion for learning about these sectors. Add his knowledge, to your Value Line (or Zack’s, I can’t remember what you used for birdogging) and then I’ll chart up your picks to see where we are.
Paul, do you have any idea if Albermale “refines” lithium so that it can be sent directly to battery makers? I posted a link to something Elon Musk said about a week ago as a stock tip: he said to buy Lithium refiners (not necessarily the miners). Any comments would be appreciated.
Albermarle charts.
$ALB daily chart - has loads of bullish indicators firing off here. I’m hoping for a pullback from profit taking as I would like to enter this at a better price.
$ALB weekly chart up trendline is a thing of beauty
$ALB monthly chart shows that long trendline starting in Sep 2020 has had three other touch points in the ensuing 23 months. Was tested as recently as last month and held. Firm looking bullish trendline.
Yard work calls. Hotter than the hinges on the gates of Hell out there today. Clothes soaked in 5 minutes. Water break done.
Gone,
-Rock
Lord of Sawzall