Last month, we highlighted opportunity in oversold shares of Albemarle.
In fact, on Jan. 13, we said, “Albemarle (ALB) is incredibly oversold again. And we’re buyers. For one, the lithium story isn’t cooling. Two, ALB is technically oversold on RSI, MACD, and Williams’ %R. If you take a look at a two-year chart of ALB, you can see that every time these three indicators become this oversold, the stock tends to bounce back shortly after.”
At the time, ALB traded at just $243.21. Today, it’s up to $285.77 after the company reported a better than expected profit. The company posted 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%.”