Albemarle ($234.16): A Steady Materials Name Benefitting From More Than EV

Key Takeaways

  • Alblemarle ($ALB) is the dominant player in lithium mining and extraction and has some of the most valuable and economic lithium reserves in the world.
  • The company also has leading conversion facilities and intellectual property to help give it a competitive advantage against the limited amount of other lithium miners.
  • The company is pretty well diversified across three segments. Lithium, Catalysts and Bromine specialties. The chief catalyst would be the rising demand and favorable supply picture for lithium because of the rise of EV, but the bromine and catalysts have respectable strategies.
  • The company has a clear strategy to maximize productivity, grow profitably by anticipating future demand and to reduce capital intensity for higher CAPEX returns.
  • This company should benefit from long-term changes to the economy from electric vehicles. It has a diverse and profitable portfolio of mining assets that put it ahead of its peers and make it a key picks and shovels play to the rise of EV, literally.

One great way to pick a stock is to find a consolidated specialty industry where there are only a handful of operators, then to find the best one amongst that group in terms of competitive advantage. There are a lot of ways to pick stocks but finding compan...

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