בס״ד

If It’s Lithium, It’s a Buy! …But Not Forever. (ALB)

Posted on January 14, 2021

Today’s trade is based on Charlotte, NC’s Albemarle Corp. (NYSE:ALB), the company with an impossible name and its own, patented method to kill us all with chemicals.

[Whisper only]: The company is involved in engineering products composed of LITHIUM.

Yes, Von Zipper, and even though electric vehicle sales are in decline over the last two years, investors are still as hyped as ever on the new technology, as anyone gambling with Tesla will gladly tell you.

Have a look here –

As for ALB, lithium is not the only song they sing, but it accounts for the majority of the ‘action’ surrounding the stock of late.

To wit – the company announced earlier in the week that it was expanding its lithium production facility in Nevada, to the thrilling roar of the EV crowd, who appear to have bought on rumor and… well, have ceased to buy ever since (see chart, below).

Democrat senatorial wins in Georgia may also have been a catalyst, as the nation edges ever closer toward a Green New Deal.

Whoa!

But we see it more as a pause before the dive.

After all, there’s only so much legitimate excitement to go around.

Overdone Fundamentals

That said, ALB will deliver earnings on February 17th, but until then, here are the company’s current vital stats –

  • P/E is a fatty 50.98,
  • Price to Book is 4.71,
  • Dividend yield is 0.84%,
  • Debt to Equity is a little heavy at 0.86,
  • Earnings per share are down 30% for the year and 36.90% Q/Q, and
  • Insiders spent the last six months selling 67.77% of their stock.  That amounts to some $60 million (not a paltry sum) – whereas only $6 million was sold in the first half of 2020.

So we had a look at the daily chart.

And it told us –

May the Holy One bless you and yours through the storm.

Many happy returns,

Matt McAbby

 

 

 

 

 

 

 

TRADE ESSENTIALLY MAKES YOU A BUYER AT 95 UNDER A WORST CASE SCENARIO

GOOD COMPANY, SEEMILNGLY BRIGHT FUTURE

WHY NOT?

Many happy returns,

Matt McAbby

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