One of the key points of tension in the ongoing conflict over the tech market between the U.S. and China is control over the supply of raw materials like lithium, which are used in the production of lithium-ion batteries. With the increasing expansion of the EV market especially, establishing a domestic supply chain for lithium is a big goal for the United States - so much so that there's a whole section of the Inflation Reduction Act devoted to tax breaks and other incentives to help make that happen.
That means it's a good time to go looking for opportunities in this sector, especially if you can find a company that other investors are overlooking for whatever reason. And it so happens that one of the biggest and most profitable lithium providers in the world is currently almost 40% down from its 52-week high.
Remember, it's not always a portent of doom for a business when the stock price takes a bit of a beating, and if the company is solid, buying when it's at a discount like this can lead to serious gains as it pushes back up to its prior highs.
And this company definitely checks all the boxes. I'm talking about a whopping 40.55% profit margin on $9.66 billion in trailing 12-month revenue. Year-over-year quarterly revenue growth of 60.2%. $3.92 billion in net income available to common shareholders. You don't often see a bill of health that looks this good from a company of this size - $23 billion market cap.
And there's a catalyst coming as they reap the benefits of those government incentives I mentioned before. This company is getting ready to double its lithium capacity in the United States with an expansive new facility in South Carolina, in throwing distance of major auto manufacturers where it can easily serve their EV-related demands.
Check out the video for the ticker:
One of my specialties is finding opportunities like this where other investors aren't looking, and I'm looking very hard at the fastest-growing tech sector there is right now - artificial intelligence.
We're closer than anyone realizes - maybe even just a few months away - from new AI models that are going to blow ChatGPT out of the water. And while expensive tech stocks like Microsoft and Google will benefit from that, the real profit potential is in a little-known industry with stocks selling for up to 97% less than the big names, but which has the potential to grow literally as fast as the AI market.
Everything you need to know about the best way to profit off of the next generation of AI is in my briefing here. Grab it before Wall Street catches on.
The post Buy This Lithium Stock Now Before It Rebounds appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.