ALB & SQM

Albemarle Corp. & Sociedad Química y Minera de Chile SA

Industrial/Transportation


Presented:08/31/2022
Price:$267.96
Cap:$31.39B
Current Price:$95.74
Cap:$11.25B

Presented

Date08/31/2022
Price$267.96
Market Cap$31.39B
Ent Value$27.48B
P/E Ratio120.8x
Book Value$51.96
Div Yield0.59%
Shares O/S117.13M
Ave Daily Vol1,297,354
Short Int2.48%

Current

Price$95.74
Market Cap$11.25B
Albemarle Corp. engages in the development, manufacture, and marketing of chemicals for consumer electronics, petroleum refining, utilities, packaging, construction, transportation, pharmaceuticals, crop production, food-safety, and custom chemistry services. It operates through the following segments: Lithium, Bromine, Catalysts, and All Other. The Lithium segment develops and manufactures basic lithium compounds, including lithium carbonate, lithium hydroxide, lithium chloride, and value-added lithium specialties and reagents. The Bromine segment consists of bromine and bromine-based businesses including products used in fire safety solutions and other specialty chemicals applications. The Catalysts segment contains two product lines: clean fuel technologies, which are primarily composed of hydro processing catalysts, and heavy oil upgrading that is composed of fluidized catalytic cracking catalysts and additives. The All Other segment includes the FCS business. The company was founded in 1993 and is headquartered in Charlotte, NC.

Publicly traded companies mentioned herein: Albemarle Corp (ALB), Sociedad Química y Minera de Chile SA (SQM)

Highlights

The presenter views the lithium stocks Albemarle Corp (ALB) and Sociedad Química y Minera de Chile SA (SQM) as attractive shorts at this time based on historical supply & demand trends in this space and the potential for a repeated boom-bust cycle as supply increases. While the record high prices for commodity grade lithium are currently being driven by high demand from the EV sector, the presenter believes that supply growth over the next few years will outweigh demand growth on an incremental basis, leading to a decline in the price of lithium from $70k per ton today to as low as $20k - $30k. At these prices, companies should have trouble meeting consensus estimates that are modeled using an equilibrium price of ~$50k per ton, which would place meaningful pressure on the prices of these stocks. 

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

  • Signing up and creating account with us unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Request access to DeMatteo Research for full access

Request Access

Already have an account?

Idea Discussion

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Commentor 1 - 2 weeks ago

Signing up and creating account with us, unlocks this content for you. Contact us today for full access to DeMatteo Research and more.

Idea Discussions display submitted commentary from our investor community.

To read and participate in the discussion with the presenter and investor base, request access to DeMatteo

Request Access

Already have an account?

An error occurred loading this content. Try again later or contact us.