Last month, we highlighted the opportunity in oversold shares of Albemarle.
In fact, on Jan. 24, we said, “If you pull up a two-year chart of ALB with RSI, MACD, and Williams’ %R, you can see the opportunity. Take a look at what happens to the ALB stock every time RSI dips to its 30-line, when MACD drops well under its mean, and when Williams’ %R drops to 80 or below. About 85% of the time, the ALB stock will pop. Since 2022, it happened in January, February, late April, July, and October…”
At the time, ALB traded at just $260.73. Today, it’s up to $285.77 after the company reported a better-than-expected profit. The company posted a net income of $1.13 billion, or $9.60 per share, as compared to a loss of $3.8 million, or 3 cents per share, year over year. All thanks to a five-fold jump in lithium sales.
As noted by Mining.com: “The results came despite the more-than 300% jump in the price Albemarle charges for its lithium, reflecting the aggressive hunt by automakers for fresh supplies of the battery metal as they build out fleets of all-electric vehicles. Albemarle expects to raise its lithium prices this year by at least another 55%.”
