Sociedad Quimica y Minera de Chile Stock Has Gotten Cheap

Summary

  • Sociedad Química y Minera de Chile S.A. is a leading lithium miner facing short-term challenges due to weak EV sales, but long-term prospects remain positive.
  • Recent results show a substantial net loss, primarily due to high taxes, but future profitability is expected as tax issues are resolved.
  • The global EV market is facing challenges with slower growth, impacting lithium demand, but the long-term outlook for the lithium market remains promising.
  • Looking for a helping hand in the market? Members of Cash Flow Club get exclusive ideas and guidance to navigate any climate. Learn More »

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Article Thesis

Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a leading lithium miner that has seen its shares come under pressure in the recent past. Weak EV sales are a headwind right now, but the longer-term picture

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This article was written by

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Jonathan Weber holds an engineering degree and has been active in the stock market and as a freelance analyst for many years. He has been sharing his research on Seeking Alpha since 2014. Jonathan’s primary focus is on value and income stocks but he covers growth occasionally.

He is a contributing author for the investing group Cash Flow Club where along with Darren McCammon, they focus on company cash flows and their access to capital. Core features include: access to the leader’s personal income portfolio targeting 6%+ yield, community chat, the “Best Opportunities” List, coverage of energy midstream, commercial mREITs, BDCs, and shipping sectors,, and transparency on performance. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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