Opinions Patricia Perez-Coutts
Sociedad Quimica Y MineraSQMTOP PICKSep 19, 2022
It produces lithium which is needed for the growing EV market. Its production is done in an environmentally friendly way and it is one of the lowest cost producers as well as expanding capacity. Has a very large market share. Also has a fertilizer business. Buy 10, Hold 4, Sell 2
$107.03
Stock price when the opinion was issued
$85.87
As of May 29, 2026. Market Open.
chemicals
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BUY
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.
Dennis da SilvaOwned
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BUY
He hasn't done seasonal analysis on lithium, but it will follow the metals sector and that is now doing well, from January into May. Lithium bounced up in February 2022, but has flatlined since then. Lithium is the key ingredient for car batteries and that is undersupplied. SQM shares have built a base, which is a strong set up for seasonality. Is poised to do well.
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COMMENT
Lithium stocks rocketed from mid-2020 to late-2021. Stocks have fallen but not lithium itself which tripled in 2021 and added another 130% so far this year, up 800% since end-2020. Lithium stocks are reporting earnings and reflecting that price, so shares are starting to climb. Even if the economy slows down, the demand for lithium batteries will continue to rise. There's no shortage of lithium, but extracting it takes a long time and a lot of capital. SQM is a big Chilean materials company with a lot of lithium exposure. The street is worried about Chile's new socialist president, so SQM lagged its lithium peers last year. SQM shares are catching up this year, up 79% YTD. SQM reported tonight and he hasn't had a chance to examine them.
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BUY
TOP PICK
He likes all the major lithium players. They grew 181% in the lithium division last quarter. Latin America was beaten up a little bit. It is about energy storage everywhere. There are 6 more giga-factories going up in China right now. (Analysts’ target: $36.00).
Matthew McCallOwned
chemicals
TOP PICK
Based in Chile. Largest, lowest cost producer of potassium nitrate, lithium carbonate and iodine. Potassium nitrate is more valuable and stable than potash and very important fertilizing. Lithium carbonate used for powering small electronics and possibly future electric vehicles. Iodine is needed for medical purposes, especially radiation treatment. Possible takeover target.
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COMMENT
Lithium producer in Chile. Largest producer globally and have about 250 years supply. Lithium story is overblown and will get more so.
Rick RuleOwned
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