Howard Klein, founder of RK Equity and author of the Lithium-ion Bull newsletter, laid lithium oversupply concerns to rest at last week’s Mines and Money conference.
Lithium is a hot commodity, but despite its popularity many investors remain uncertain about whether now is the right time to get into the market.
“It’s early, it’s definitely not too late,” he said at the sidelines of the show. While there was “a rerating of sorts” for the industry at the end of 2017, “since the beginning of the year there’s been a big selloff.”
According to Klein, this shakeout is an opportunity. “There’s an opportunity for those who missed it last year to … come back,” he explained. “But you still have to be selective and understand which are … the highest-quality companies and projects and enter at the right price.”
Speaking about supply and demand, Klein laid lithium surplus concerns to rest, calling them “very overblown.” He added, “it’s economics 101 … demand is outpacing supply, therefore prices are going to remain high for quite some time — in particular for lithium carbonate and hydroxide.”
Listen to the interview above for more insight on lithium from Klein, including how he picks stocks and which companies he likes right now.
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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 contributed article. 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.