One set of stocks worth buying is names tied to “the hottest commodity in the world,” says our call of the day, which comes from OilPrice.com‘s Joao Peixe.
Higher demand for lithium is guaranteed, but supplies might be constrained, Peixe writes over at that site focused on energy news. Demand is expected to keep coming thanks to lithium batteries, the key component in all those electric vehicles that Tesla and its rivals have promised to make.
There are five stock plays that Peixe recommends for betting on the soft, silvery-white alkali metal: Charlotte-based specialty chemicals provider Albemarle (ALB) , Canadian producer Southern Lithium (CA:SNL) , Chilean chemicals giant Sociedad Quimica y Minera de Chile (SQM) , the Global X Lithium ETF (LIT) and, of course, Tesla (TSLA) itself.
“Three companies currently control most of the entire world’s supply of lithium, and Albemarle is the biggest play here,” Peixe says.
Josh “The Reformed Broker” Brown also recently noted that Albemarle has caught his eye as a play.
Southern Lithium looks poised to capitalize on “a major lithium volcano” in Argentina, and SQM is the world’s largest producer of the commodity, the OilPrice.com post says. (SQM also is the No. 1 producer of iodine , used to fight nuclear radiation).
ALB is down 14 pts in last 3 days worth looking at around 110 use 105 as a STOP