
TSE:LAC
This summary was created by AI, based on 3 opinions in the last 12 months.
Lithium Americas Corp (LAC) has demonstrated a notable performance trajectory, characterized by a significant run-up followed by a pullback and subsequent sideways consolidation. Recently, the stock has broken out, indicating a positive trend, with expectations to retest highs around $12. Analysis of the 5-year chart confirms that recent movements suggest a transformation in the stock trajectory. Despite the promising signals, investors are cautioned about stock-specific risks associated with individual holdings. For those less certain or newly exploring this sector, the recommendation is to invest in a broader thematic ETF like LIT, which aggregates various rare-earth metal stocks. Additionally, recent trends show a declining gross profit figure, alongside rising production costs, indicating potential challenges ahead unless accompanied by a proportional increase in revenue.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A good play for those looking to have a position in lithium. Positive fundamentals with the EV trend. However, it will move with the sector. Good for more aggressive sector investors with a longer time frame. Unlock Premium - Try 5i Free
Part owner of a brine called Cauchari in Argentina. A joint venture they have done with SQM, probably the best operator of lithium brines globally. They recently completed a financing, both equity and debt, and offtake arrangements with a Chinese and Thai company. It was quite speculative, but no longer thinks it is. Enterprise Value is around $460 million, but could be well north of $1 billion in 2-3 years. It should be in operation by 2019. (Analysts’ price target is $1.70.)
All of a sudden there is a whole slew of interest on lithium, but thinks some of the stocks have gotten ahead of themselves. If you already own this, he would continue to Hold. The company has a particularly good project in Argentina, where there is a lot of lithium out of salt beds. They have done a joint venture with SQM out of Chile, one of the biggest players in lithium, which bodes really well for this company.