Andrew O'Donnell: More Market Pain to Come, 3 Stocks That Work Now

As broad market chaos continues, Andrew O'Donnell of the Market Mindset is looking for opportunities that align with current trends and will work during uncertain times, and he shared three small-cap stocks he likes right now.

"We're interested in specific themes that we see are in this shift — whether you want to call it a shift or a great reset," he told the Investing News Network during an interview. "We're focused on specific companies and specific areas where there's an opportunity to still make money even if overall markets are down."

O'Donnell spoke first about First Phosphate (CSE:PHOS), which is focused on beneficiating high-grade phosphate for use in the electric vehicle industry. The material is an ingredient in lithium-iron-phosphate (LFP) batteries, which are rising in popularity.

LFP batteries are being used in Tesla's (NASDAQ:TSLA) Model 3s, and Ford (NYSE:F) recently revealed that it will be building an LFP battery plant in Michigan, US. Ford will use LFP know-how provided by CATL (SZSE:300750).

"That's huge," O'Donnell said about the announcement from Ford. "But it begs the question, 'Well, where are you getting your high-grade phosphate that's purified, and how is it going to get purified?'"

He also mentioned cleantech-focused Progressive Planet Solutions (TSXV:PLAN,OTCQB:ASHXF), saying that the company recently signed a memorandum of understanding with cement maker Lafarge Canada, and is working to make the cement production process more environmentally friendly. "People don't realize that cement is about 8 percent of all carbon emissions. If you considered it a country, it would be second behind China," O'Donnell commented.

For investors following the artificial intelligence (AI) hype surrounding OpenAI's ChatGPT, O'Donnell suggested looking at Verses Technologies (OTCQX:VRSSF), which he said offers pure-play exposure to the sector.

"This is a company that is on the forefront of change. You don't have to just go buy Google or Amazon (NASDAQ:AMZN) or a huge company … that has in part of their wheelhouse an AI department. This is a pure-play AI (company)."

Watch the interview above for more of his thoughts on the topics mentioned above.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.