Market Overview:
New highs in large cap indices.
Small caps like the Russell 2000 have lagged.
Past Recommendations:
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$ ALTM
ALTM Arcadium Lithium $5.50
Arcadium Lithium is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people’s lives and accelerate the transition to a clean energy future. We drive innovation and partner with our customers to pioneer new solutions and provide high-quality finished lithium compounds. We power a more sustainable world in which lithium enables exciting possibilities for renewable energy, electric transportation and modern life. Arcadium Lithium is vertically integrated, with industry-leading capabilities across the lithium production process including hard-rock mining, conventional pond based brine extraction, direct lithium brine extraction (DLE) and lithium chemicals manufacturing.
The company was created from the merger of equals between Livent and Allkem in January 2024. In merging the two businesses, we created a leading global, vertically integrated producer of the broadest range of lithium chemicals products to meet the world’s growing demand for portable electronics, electric cars, and large-scale stationary storage facilities.
Overview:
Arcadium Lithium is trading at an incredibly low valuation due to excessive supply in the lithium market.
This is a contrarian play as longer term the trends are quite positive.
In addition, the newly combined company is in a stronger position to weather the downturn in industry trends. The have a strong cash position and a high return on equity.
Strong Capital position
Incredibly low valuation:
1.26 Price to sales
.57 Price to Book
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