• 16 mins What will happen with Venezuela's oil sector? Privatization needed?
  • 45 mins Here we go! Oil Heads Up To $74 a Barrel, But U.S. Bonds, Crude Supply Cast A Pall
  • 6 hours I am buying Huawei phone
  • 3 hours Yemen's Rebels Step Up Attacks on Aramco Oil Facilities
  • 4 hours Autobots Roll Out! - Transforming Robot Unveiled In Japan
  • 3 hours Shell and Total Results Buoyed By Higher Oil Prices. Results From Exxon And Chevron Are Expected On Friday
  • 14 hours Saudi Arabia Looks To Raise $10bn In Privatization Scheme
  • 3 hours Comprehensive List of Factors that affect crude oil price
  • 1 day China's Yuan Oil Contracts: No Liquidity, but It Will be Built
  • 1 day China Has The Ultimate Population Control Weapon
  • 1 day What happened to stocks yesterday?
  • 9 hours libya's oil disruption to send oil prices up?
  • 23 hours Electric Buses are Eating into Oil Demand
  • 4 hours Large-Cap Oil Earnings: What to Watch
  • 1 day Trump's top energy adviser resigns
  • 1 day Trump Warns Iran Against Restarting Nuclear Program
Alt Text

Brent Breaches $75 As Iranian Sanctions Loom

Brent briefly broke the $75…

Alt Text

Expect Much Tighter Oil Markets

Saudi oil minister al-Falih has…

Alt Text

Oil Majors Are Abandoning Venezuela

Private oil companies could be…

Martin Tillier

Martin Tillier

More Info

Trending Discussions

The Best Long-Term Buy In Lithium

Lithium

As a rule, I don’t like well-publicized, obvious trades, and for one good reason. By the time you get to them, the value has already gone, and the all-important risk/reward ratio is usually skewed against you. The last thing any trader wants to be is the last one in on a move. Occasionally, though, there is an opportunity with a well-known, clear rationale that still makes sense. The mining company Albermarle (ALB) is a case in point.

(Click to enlarge)

The reason that buying ALB is obvious is what ties it in with energy, they are the world’s largest producer of lithium, with around thirty-five percent of total global production. In case you hadn’t heard, lithium ion batteries are what power electric vehicles (EVs) and, surprise, surprise, they need lithium, so miners of the mineral are obviously in a good place to benefit from the shift towards EVs.

One would think that with a bull case as obvious as that, ALB would be trading at ridiculously high P/Es, an assumption supported by the chart above that shows around a fifty percent increase in the stock this year. One would, however, be wrong in that assumption. The stock has a trailing P/E of 16.7, below the Dow’s average of around 21, and a forward multiple of 25, which is above the Dow’s 19.93, but hardly overdone in the circumstances, and those circumstances are pretty persuasive.

In a very short period of time, EVs have gone from a niche market for small vehicle…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions





Oilprice - The No. 1 Source for Oil & Energy News