
TSE:LAC
This summary was created by AI, based on 3 opinions in the last 12 months.
Lithium Americas Corp (LAC-T) has shown notable movement in its stock price, with a recent breakout indicating positive momentum. The one-year chart reveals a pattern of significant run-up and subsequent consolidation, suggesting that the stock could retest its previous highs around $12. However, investors should remain cautious of stock-specific risks and consider broader themes, such as investing in ETFs related to rare-earth metals like LIT, if they lack strong conviction about individual stocks. The company's gross profit is currently negative, reflecting inefficiencies in production and sales. Despite a recent uptick in social media mentions by 26.9%, signaling potential investor interest, the increase in the cost of revenue may weigh on margins unless counterbalanced by rising sales revenues.
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.