Largo Resources Ltd. (LGO-T)

One of the few companies in the world that's cashflow positive in the vanadium business. Worldwide growth in specialty steels. He keeps holding because he loves out-of-favour commodities.

Share price not performing well. However, believes demand for products will remain. Would recommend holding to see how company performs. 

He's still bullish on vanadium. Mining market in general has had a very difficult year. Vanadium is a minor metal and hasn't attracted the market yet. Malaise sets the stage for a rebound. Longer-term supply/demand fundamentals are attractive.

Junior resource sector deeply out of favour. Vanadium offers incredibly utility as an adjunct to steel and specialty metals. Most is produced in China, and the world is looking geopolitically for a more secure source, like LGO. Political risk in Brazil.

Free cashflow and mining prospects have not gown down, even as the stock price has, making it better value. Also leases vanadium and recycles it. He's fascinated, especially as vanadium batteries get attention.

Very attractive resource. 
Current share price presenting good buying opportunity.
High demand for electric vehicles good for business. 

LGO is cheap, and growing again, but it does not generate much cash yet (only $3.5M in 2022). 
It had a big miss on earnings last quarter, and the CEO left suddenly (likely fired). 
The stock has not participated in this year's rally, and we think investors can move on.  
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Good potential in its battery business. Shows good growth, the valuation is historically cheap at 8x earnings and the balance sheet is solid. Would wait for better momentum to add. Unlock Premium - Try 5i Free

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There is strong momentum for the stop and it is cheap on valuation. The market cap is now over $1B. There is considerable prospects for global economic growth which will help the stock move higher. Unlock Premium - Try 5i Free

Up 160% YTD. One shareholder owns 45% of it. Doing well in the operations side. If you've done well, take some money off the table. He doesn't own any vanadium stocks.

A pretty strong pullback and probably because it is a pretty small cap stock. Seems to be on the trend line, but you want to see it bounce off the low end of this trend line.

Is showing some really encouraging signs. Has a nice rounded look to the base. Is doing a test of the breakout, "cup and handle" formation. You have to be careful of these penny stocks as they can be very thinly traded and manipulated, but from a purely chart view it looks good.

Penny stocks are going to be at little more manipulated by fewer investors. Chart shows the stock has huge resistance at about $0.30. It is trying to make a series of higher highs and higher lows, but he would not touch this unless it broke through $.30.

Has a deposit in Brazil very close to production. Continues to be challenged here. You have to hang in with this one. Small cap so high risk.