Stockchase Opinions

Mike Philbrick Horizons Global Lithium Producers Index ETF HLIT-T PAST TOP PICK Dec 07, 2023

(A Top Pick Nov 15/22, Down 43%)

Longer term, this will probably balance out. But lithium market had significant changes in the last year, and that's why you keep tabs on your portfolio more than just once a year. Reduction in lithium prices due to weak demand and over-supply. Back away. 

Remember that these "explore" ideas are not "core". Smaller positions with stop losses.

$24.060

Stock price when the opinion was issued

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Has a smaller market cap since it began trading this year. One of the biggest disruption is energy storage technologies. Whether that be nuclear, solar, wind, etc, need power storage. Lithium producers are hard to get your hands on since it is all over the world. An interesting product that will be driven by innovation.
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A uranium play. Sales of EVs are growing, and these cars demand lithium. There's not enough lithium, so prices will rise. China especially is adapting to EVs 6x faster than the U.S. HLIT charges no MER.
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PAST TOP PICK
(A Top Pick Nov 15/22, Down 10%)

A longer-term play. Lithium prices have been done, but economies are decarbonizing (EVs). These cards need lithium, and this secular trend will continue. But lithium and this ETF will be volatile.

COMMENT

The energy transition from fossil to renewable takes time. That's the reality. There's plenty of lithium in the world, but how quickly can we get it to market? The market was surprised by how quickly brine mining in Chile. Also, people aren't buying EV's as quickly as the market expected. Lithium is close to the bottom, so the risk/reward looks good. He doesn't buy ETFs for his clients, but owns SQM and Albemarle.