-->

Wait, he said “A license to print money?”

Post a Comment

Sponsored *


One of the biggest trends right now, of course, is the boom in electric vehicles.


While a few years ago, an EV was a rare sight.  Today, you see them everywhere now, and the trend isn't stopping anytime soon.


This chart from Statista shows just how many vehicles we're talking about.  Well over 1 million new vehicles next year, and a projected 2 million+ just three years after that – the growth rate is staggering.


https://www.statista.com/outlook/mmo/electric-vehicles/united-states#unit-sales


As a trader, I am always looking for ways to profit from long-lasting trends like this.


To profit from this trend, I ask myself, "Should I buy TSLA?"  


While I think it is one of the best companies out there, the odds of it making a significant move from here seem remote to me.


Sure, Tesla is the gorilla in the space, but there is an ever-increasing amount of competition in the EV market now.


While TSLA used to be the only "real" game in town, every automaker is launching new electric cars now.  That space is getting crowded.


But, no matter who makes the car, it is going to need one thing – BATTERIES!


Just think about all of the batteries these millions of cars will need to run?  


I read in Barron's that "a single EV has roughly 10 kilograms—or 22 pounds—of lithium in it. A ton of lithium metal is enough to build about 90 electric cars." (1)


If we're talking about making millions of EV cars, where are we going to get the mind-blowing amount of lithium needed to make those batteries?


That is where I want to bring up today's stock idea: 

🔋Recharge Resources (RECHF) 🔋


RECHF is a mineral exploration company focused on exploring and developing the production of high-value battery metals to create green, renewable energy to meet the demands of the advancing electric vehicle and fuel cell vehicle market. (1)


If you aren't used to seeing "5 letter ticker" symbols, that is because RECHF is a Canadian company.  The "F" means "foreign" if that's new to you.


RECHF is a tiny, $.30 stock right now, trading with a very small $12m market cap, according to Yahoo Finance. (2) 


I love trading small, high-risk stocks like this because they have the potential of making huge moves higher (or lower), especially in the short term.


While I don't think that TSLA will ever make a 1000% move again, I do think we will see some smaller companies make those types of gains, so that is where I want to focus.


Now, if you are like me and looking for opportunities in lithium stocks, there are not a whole lot of options out there.  


There are a few big players now, but they were tiny stocks just a few years ago, just like RECHF is today.


To show you the potential in this sector, if you find the right company, check out Livent Corp (LTHM) over a 3-year period.


It went from $4 to over $35 at one point.



Or how about Lithium Americas (LAC), which once traded under $.50, and then soared over $40? 



Or Piedmont Lithium (PLL) which traded under $5, only to rocket to over $80 in just a few months after getting on the lithium train?



Every single one of these stocks started its life as a tiny, small-cap company, and now they are valued in the BILLIONS.


Now, I know that a lot of hard work, and frankly – luck – goes into seeing a stock make these kinds of moves, and I am not saying RECHF is going to join the "billion dollar club" anytime soon.


However, when I look at the current valuation, RECHF is pretty appealing to me just on the fact they are on the hunt for what could be one of the most valuable resources of our time.


Think about the sheer scale of lithium mining that needs to happen in order to produce millions of electric vehicles?


You, the government, or Elon can't just write a check or snap their fingers, and it will happen.  The massive production required needs to be planned out years in advance.


That's why Barron's said that limits to lithium might be a big risk for all EV companies moving forward… (3)


Here is a great chart from Benchmark that visually shows just what I'm talking about when it comes to the scale of mining needed.


(3)



Elon Musk himself said there is a looming shortage holding back TSLA right now…

(4)


Elon recognizes the crucial importance of lithium.  He can build the infrastructure to make all the cars in the world, and the demand can be infinite – but if there is not enough material to produce the batteries, then everything stops.


There is a reason the Wall Street Journal calls lithium the "white petroleum."  It is the fuel that is going to power the next generation of vehicles.


That's why Elon also said…

(5)


"A license to print money"... now, that sounds like a business I want to be in!


RECHF is mining right now in Argentina, which shows they are on the right path.  It is nearly impossible to mine in the US, and Argentina is one of the few places in the world where you can find lithium.


Not many people know about this, but Argentina is quickly growing into one of the world's powerhouses for lithium.


S&P Global markets said…

They went on to say, "JPMorgan forecast in August 2022 that Argentina would go from supplying 6% of the world's lithium in 2021 to 16% by 2030, overtaking Chile as the No. 2 lithium producer in the world by 2027, behind only Australia." (6)


Of course, I am no expert when it comes to assessing mining stocks.  I simply read a lot, look at trends and draw conclusions that make sense to me.


I found a research report on RECHF from Intela Research, by Matt Levy, CFA.



His firm put a $1.12 price target on RECHF – that is over 300% higher than the current price today! (7) 


Here are some excerpts from his report that I found most compelling:


• As demand for the metals continues to challenge or outstrips supply, the commodity prices are almost certain to move higher, thus benefiting any mining firms with exposure. 

• This should drive both near-term and long-term stock price appreciation. 

• The June/July correction in commodity prices is an opportunity to add to positions as the correlation between stock and metals prices is high. Offering potential upside once prices continue to ascend. 

• Stock was trading near its 52 week-low of $0.12 but recovered to a high of $0.80, more than a 600% increase and closed at $0.35 as of October 28th. This implies strong demand for the shares at low prices. The price also has closed the recent downtrend that developed, closing higher than the highs seen over the last few months. Having reversed this downtrend and with commodity prices increasing, the stock could move back into the $1.00+ level. 

• The company is predominantly an exploration mining firm focused primarily on four metals (lithium, nickel, cobalt, and copper) used in batteries designed for modern-day electronic devices and vehicles.

 • The company is well poised to take advantage of the exponential battery growth of lithium-ion batteries in personal devices and electronic vehicles. 

• The growth of lithium-ion batteries is expected to be over 18% per year between 2022 and 2030, pushing the industry to US $183 billion by 2030. 

• New manufacturers, such as Lucid Motors, are entering the market while the more established automakers (Tesla, Toyota, Ford, Volkswagen, and so on) are increasing their production of electronic vehicles (EVs) and Battery electric vehicles (BEVs). 


Overall, I think RECHF is a company in the right place at the right time.  Lithium is clearly the future, and it is going to be a crucial part of our everyday lives for a long time.  There are very few investment opportunities in the sector and I think RECHF is a very interesting stock to look into right now. Take a look at it and make sure it is you on your trading radar.  This stock has a history of very big price swings.  As always, do your own due diligence.  Make sure you read all about the company's business, financials, opportunities, and risks right on its website as a great place to get started.


Sources:

  1. https://recharge-resources.com/

  2. https://finance.yahoo.com/quote/RECHF?p=RECHF

  3. https://www.barrons.com/articles/new-risk-tesla-other-electric-vehicle-makers-lithium-supply-batteries-51601498472

  4. https://www.benchmarkminerals.com/membership/more-than-300-new-mines-required-to-meetbattery-demand-by-2035/

  5. https://www.bloomberg.com/news/articles/2022-07-21/lithium-refining-is-license-to-print-money-tesla-s-musk-says

  6. https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/argentina-s-lithium-incentives-push-industry-prospects-above-neighbors-73972022

  7. https://intelaresearch.com/wp-content/uploads/2022/11/RR-Intela-Report-Final-2022-10-30.pdf


PAID ADVERTISEMENT. RagingBull has been paid ten thousand dollars cash by Lifewater Media for advertising Recharge Resources. As a result of this advertisement and other marketing efforts, Raging Bull may receive advertising revenue from new advertisers and collect email addresses from readers that it may be able to monetize. As of the date of this advertisement, the owners of Raging Bull, do not hold a position in Recharge Resources. This advertisement and other marketing efforts may increase investor and market awareness, which may result in an increased number of shareholders owning and trading the securities of Recharge Resources, increased trading volume, and possibly an increased share price of the Recharge Resources securities, which may or may not be temporary and decrease once the marketing arrangement has ended.

FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. This advertisement is for educational and informational purposes only. All material information contained in this advertisement is based on information generally available to the public, which public information is believed to be reliable and accurate. Nevertheless, Raging Bull can guarantee the accuracy or completeness of the information. This advertisement does not purport to be a complete analysis of any company's financial position. This advertisement or any statements made in it is not, and should not be construed to be, personalized investment advice directed to or appropriate for any particular individual. The statements made in this advertisement should NOT be relied upon for purposes of investing in the companies mentioned in this advertisement, nor should they be construed as a personalized recommendation to you to buy, sell, or hold any position in any security mentioned in this advertisement or in any other security or strategy. It is strongly recommended that you consult a licensed or registered professional before making any investment decision.

SUBSTANTIAL RISK INVOLVED. Any individual who chooses to invest in any securities of the companies mentioned in this advertisement should do so with caution. Investing or transacting in any securities involves substantial risk; you may lose some, all, or possibly more than your original investment. Readers of this advertisement bear responsibility for their own investment research and decisions, and should use information from this advertisement only as a starting point for doing additional independent research in order to allow individuals to form their own opinion regarding investments. It is easy to lose money investing or trading, and we recommend always seeking individual advice from a licensed or registered professional and educating yourself as much as possible before considering any investments.

NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Raging Bull, or any of their owners, employees or independent contractors is currently registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization.

USE OF FORWARD-LOOKING STATEMENTS. Certain statements made in this advertisement may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Exchange Act of 1934. Forward-looking statements often include words such as "believes," "anticipates," "estimates," "expects," "projects," "intends," or other similar expressions of future performance or conduct. Forward-looking statements are based on expectations, estimates, and projections at the time the statements are made and are not statements of historical fact. They involve many risks and uncertainties that could cause actual results or events to differ materially from those presently anticipated. There is no guarantee that past performance will be indicative of future results. Raging Bull does not undertake an obligation to update forward-looking statements in light of new information or future events. Readers can and should review all public SEC filings made by the companies profiled in the Advertisements at

https://www.sec.gov/edgar/browse/?CIK=1321834&owner=exclude

TRADEMARKS. All trademarks used in this advertisement are the property of their respective trademark holders and no endorsement by such owners of the contents of the advertisement is made or implied.


Image
Facebook Twitter Instagram LinkedIn

RagingBull, LLC

62 Calef Hwy. #233, Lee, NH 03861



 

 

© Copyright 2020, RagingBull

 

DISCLAIMER: To more fully understand any Ragingbull.com, LLC ("RagingBull") subscription, website, application or other service ("Services"), please review our full disclaimer located at https://ragingbull.com/disclaimer.

FOR EDUCATIONAL AND INFORMATION PURPOSES ONLY; NOT INVESTMENT ADVICE. Any RagingBull Service offered is for educational and informational purposes only and should NOT be construed as a securities-related offer or solicitation, or be relied upon as personalized investment advice. RagingBull strongly recommends you consult a licensed or registered professional before making any investment decision.

RESULTS PRESENTED NOT TYPICAL OR VERIFIED. RagingBull Services may contain information regarding the historical trading performance of RagingBull owners or employees, and/or testimonials of non-employees depicting profitability that are believed to be true based on the representations of the persons voluntarily providing the testimonial. However, subscribers' trading results have NOT been tracked or verified and past performance is not necessarily indicative of future results, and the results presented in this communication are NOT TYPICAL. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, market dynamics and the amount of capital deployed. Investing in securities is speculative and carries a high degree of risk; you may lose some, all, or possibly more than your original investment.

RAGINGBULL IS NOT AN INVESTMENT ADVISOR OR REGISTERED BROKER. Neither RagingBull nor any of its owners or employees is registered as a securities broker-dealer, broker, investment advisor (IA), or IA representative with the U.S. Securities and Exchange Commission, any state securities regulatory authority, or any self-regulatory organization. Employees, owners, and other service providers of RagingBull.com, LLC are paid in whole or in part by commission based on their sales of Services to subscribers.

WE MAY HOLD SECURITIES DISCUSSED. RagingBull has not been paid directly or indirectly by the issuer of any security mentioned in the Services. However, Ragingbull.com, LLC, its owners, and its employees may purchase, sell, or hold long or short positions in securities of the companies mentioned in this communication.
 

Related Posts

There is no other posts in this category.

Post a Comment

Subscribe Our Newsletter