Sociedad Química y Minera de Chile: Falling Knife Still Worth Catching

(8min)

Summary

  • SQM posted a mixed earnings release. However, there are reasons to be optimistic.
  • Lithium prices have plummeted, impacting SQM's revenue and earnings markedly.
  • SQM's low-cost position, places it well as it attempts to gain market share by not curtailing production.
  • SQM investors should assess its growth prospects from a cyclical perspective. It seems to be at a long-term cyclical low.
  • I explain why SQM's falling knife is still worth catching, but caution must be heeded if the EV growth curve normalizes further.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

Silver Peak Lithium Mine

simonkr

SQM: Falling Knife Reaching A Bottom?

Sociedad Quimica y Minera de Chile S.A. (NYSE:SQM) investors have endured another disappointing seven months since my last update as the battering in the lithium market intensified. As a result, what seemed like a

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