- That lithium is central to several emerging markets like mobile telephones and electric vehicles (EVs) is not news
- Some of the biggest companies in the S&P/TSX Venture Composite Index are lithium companies
- Two of the stocks here have spiked significantly this year when their indices are in the red
That lithium is key to several emerging markets is not news. It is central to the mobile telephones and, perhaps more importantly, the electric vehicle (EV) sectors.
Investors considering lithium may want to think more long term. The general consensus is that the future of the automobile industry will be proliferated by EVs.
The S&P/TSX Venture Composite Index has lost 14 per cent so far this year. Some of the biggest companies in it are lithium companies.
Might this be a good time for long term investors considering lithium? Let’s look at some TSXV lithium stocks.
Standard Lithium Ltd (TSXV:SLI)
A C$1.28 billion market cap company, Standard develops lithium from US brine properties. Its stock closed Wednesday, April 27, at C$7.80.
SLI has ballooned nearly 81 per cent in a year. However, in 2022, it has lost 36 per cent.
SLI is currently priced 131.45 per cent more than its 52-week low of C$3.37 and 51 per cent below its 52-week high of C$15.92 in October 2021.
Sigma Lithium Corporation (TSXV:SGML)
Focused on the EV industry, Sigma’s stock closed Wednesday at C$19.48.
Unlike the indices its listed on, namely the S&P/TSX Venture Composite Index and the S&P/TSX Venture Materials (Sector) Index, that are both in the red year-to-date (YTD), SGML has soared nearly 50 per cent this year.
The stock has rocketed 279 per cent in the last 12 months. Its current market cap is C$1.9 billion.
American Lithium Corp (TSXV:LI)
American Lithium’s stock closed Wednesday at C$3.03. While its one-year rise is 29 per cent, over the last nine months it has grown 87 per cent.
This, despite its loss of nearly 29 per cent YTD. On November 15, 2021, the LI stock touched a one-year high C$6.25. It is now trading about 52 per cent below that.
Frontier Lithium Inc (TSXV:FL)
Frontier operates in Electric Avenue, Ontario’s premium lithium district and its stock ended Wednesday at C$3.31.
FL has been on a growth trajectory for most of the past year including in 2022. The stock has spiked nearly 268 per cent in a year and is in the green by 63 per cent YTD.
It is currently about 378 per cent above its one-year low which came in May 2021.
Rock Tech Lithium Inc (TSXV:RCK)
Chemical technology company Rock Tech wants to streamline production by combining resources from Canada with Europe-based processes. Its stock closed Wednesday at C$5.30.
RCK has gained about 18 per cent in a year. While it has lost about 30 per cent this year, it has rebounded 15 per cent in the last three months.
RCK now costs 43.5 per cent less than it did in October 2021 where it reached its yearly high of C$9.38.
Here are some of the biggest companies on both the above-mentioned indices – the S&P/TSX Venture Composite Index and the S&P/TSX Venture Materials (Sector) Index.
All the above stocks have grown over the last 12 months. Two of them have spiked significantly this year when their indices are in the red. Stock markets in general seem to be having a bearish year so far.
Given the above, and the growth expected in the EV sector, these five TSXV stocks make for a good watch over the next five years.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.