Three Lithium ‘Bounce Back’ Stocks for 2020
Five years ago, the lithium sector boomed. Some associated stocks went up as much as 8,800%. Then they crashed. Today, a new potential lithium boom is stirring. Here are three Aussie stocks to look at ahead of the bounce back…
Dear Reader,
You might think lithium is an old investing story…
The last time investors went crazy for lithium stocks back in 2015, listed Aussie miners like Galaxy Resources Ltd went berserk.
Shares in this lithium producer went from five cents…to more than 50 cents…inside 12 months.
A 10-fold gain…in under a year.
In 2016, the same shares shot up even further — to $4.54.
Investors who rode that wave would have scored gains in excess of 8,800%.
Crazy.
But like all booms, they eventually bust.
From 2017 onwards lithium prices sank…and so too did shares in the Aussie miners digging it up.
You may think that’s the end of the story for lithium…
Not so, as editor Ryan Dinse reveals in his brand-new Money Morning report. Money is starting to flow into lithium stocks once again…
For example, the Global X Lithium ETF [NYSE:LIT] — an index that invests in the full lithium cycle, from mining and refining, through to battery production — broke through a key resistance level in early 2020.
While nothing is guaranteed, historically this says the worst is behind for lithium.
Then just consider Tesla for more signs of explosive potential in this sector…
Between October 2019 and early February 2020, Tesla’s share price more than tripled, rising 248%.
That’s thanks to delivery of the first lot of electric vehicles (EVs) from its Shanghai ‘Gigafactory’.
What does Tesla need to make these cars?
Lithium. And lots of it.
Then in January 2020, Chinese government officials announced EV subsidies would remain in place for the foreseeable future.
That means Chinese produced EVs are set to stay cheaper for longer. A move that’s sure to keep EV (and therefore lithium) demand strong.
They are just three reasons why Ryan has just released a new Money Morning investor report, titled: ‘Three Lithium ‘Bounce Back’ Stocks for 2020’.
Inside, Ryan shares three Aussie lithium stocks he believes will be massive beneficiaries of a new lithium boom.
Download this Money Morning report now and you’ll discover…
- A low-cost lithium producer that has a healthy cash buffer: Shares are up close to 36% since from its March lows. Toyota has a 15% share ownership in the company, too. But don’t let those numbers turn you off. This company has proven that even when lithium prices are down, they can still make nice profits…
- A lithium company that is well-placed to capitalise on Europe’s 100% reliance on imported lithium: Given its geographical advantage, as well as having received huge support from the EU, its stock is almost certain to rise significantly when its flagship project goes into full swing.
- A mine operator in Western Australia with several lithium consuming giants lining up to buy…China’s largest EV battery manufacturer (CATL), the Chinese car company Great Wall and Korea’s POSCO, have all recently signed purchase agreements. They have so much demand from these buyers that they are expanding their production capacity to 7.5 million tonnes per annum…
You’ll discover why Ryan Dinse is convinced that these three specific lithium stock picks are set to lead the lithium bounce back in 2020 in this brand-new Money Morning report: ‘Three Lithium ‘Bounce Back’ Stocks for You to Look at in 2020’.
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All advice is general advice and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.
Calculating Your Future Returns: The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in this report are forecasts and may not be a reliable indicator of future results. Any potential gains in this do not include taxes, brokerage commissions, or associated fees. Please seek independent financial advice regarding your particular situation. Investments in foreign companies involve risk and may not be suitable for all investors. Specifically, changes in the rates of exchange between currencies may cause a divergence between your nominal gain and your currency-converted gain, making it possible to lose money once your total return is adjusted for currency.