Dear Reader,
The other day, I had the privilege of joining in on one of our company’s podcasts, which are growing in popularity across our industry and even starting to spread beyond. And while I was there, we got into a fascinating discussion about the best lithium stocks investors can buy.
A Great Chat About the Best Lithium Stocks
It was a great conversation about the best lithium stocks as well as the whole lithium market. And it’s highly worth a listen if you have the time when you’re finished reading today. You can get access to it here. It’s completely free, and all I ask is that you subscribe to the channel, like the video (if you do), and hit the bell to make sure you get notified when we post more episodes.
But before you head off to check out that podcast (and hopefully like it enough to take in a few of the other episodes we’ve got out there), you need to finish this article so you can learn how and where to find the best lithium stocks on the market.
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Even the Best Lithium Stocks Have Fallen
You see, the lithium industry has been out of favor for a few years now and even the very best lithium stocks have gotten punished unfairly. That’s because lithium prices fell from all-time highs above $60,000 to near-term lows around $13,000…
And all of the investors who’d just recently gotten on the lithium bandwagon panicked and tried to abandon ship all at the same time. It didn’t matter that they were selling the best lithium stocks just as fast as the worst ones. They didn’t know why they’d gotten in but they knew exactly why they were getting out: Lithium was a dead market.
But the financial world doesn’t work in absolutes like “never,” “always,” or “dead.” And nothing is never coming back because it’s dead and always will be. And that’s the case with the lithium market and the best lithium stocks out there, as well. The catalysts driving lithium demand ever higher (EVs, grid-scale energy storage, portable electronics) haven’t gone away. They’re still growing. And growing demand leads to higher prices when supply can’t keep up.
So investors are going to need the best lithium stocks in their portfolio so that they can capitalize on the growing prices that growing demand is going to bring with it. But there are a LOT of options out there when it comes to lithium stocks. And it’s going to be a challenge to find the best lithium stocks. But I’ve got a secret I want to share with you today…
We Already Found the Best Lithium Stocks
You see, I work with a team of some of the smartest and most experienced analysts and researchers in the world. And when lithium prices crashed and investors dumped the best lithium stocks en masse, I had my team searching the wreckage for discarded value.
I gave them a set of criteria of what I was looking for and sent them off to find the best lithium stocks. I told them that the companies needed to have proven resources and some kind of extraction program in place. With so many of the best lithium stocks selling for a discount, I didn’t see the need to buy anyone who hadn’t proven they could mine lithium.
And I told them that the companies needed to have clean balance sheets and strong income statements because the best lithium stocks are the ones that aren’t drowning in debt and burning through cash. I also told them that I wanted them to focus on domestic investments in the United States first. In my view, the best lithium stocks get their lithium here in the U.S. and aren’t beholden to China like the majority of the industry is.
So, with a few basic criteria to thin the herd, my team went off and threw themselves at the project for a few months. And all the while, the price of lithium continued to slide, along with the prices of the best lithium stocks and the worst, too. Just as I saw a glimmer of hope that we’d reached a bottom in the lithium market, my team came back with a lineup of three companies that completely blew me away…
The Best Lithium Stocks for the Best Investors
Not only did they find me two neighboring operations that are two of the best lithium stocks out there… But they found me a third that’s what I’m convinced is the best of the best lithium stocks you can find anywhere. And all three of these companies met all of my stringent criteria to a T.
- Proven resources with existing operations ✅
- Domestic source without foreign control ✅
- Strong financial position with little to no debt ✅
The two neighboring operations are two of the best lithium stocks for investors because they’re using a time-tested technique to speed up the process of mining a proven lithium field inside the United States. They’re right down the road from one of the biggest lithium companies in the world. And the deposits they’re extracting are found in a rock far softer and easy to break down than just about any other non-liquid deposits in the world.
And the third, the one that I’m convinced is No. 1 on the list of the best lithium stocks, is a company that’s also got operations right here in the U.S. of A. Plus, it’s got three years of extraction and testing under its belt to prove that its reserves are the real deal and that its extraction technology is the perfect solution for what is so far America’s biggest discovered lithium field.
Not only that, but this third company is also surrounded by much larger operations that are just now getting started in a region where this little-known gem has been gaining experience for years. And that whole situation got me thinking about a similar situation that just unfolded for me and my investors in the oil industry.
The Best Lithium Stocks Perform Like the Best Oil Stocks
I’m convinced that these three companies represent the three best lithium stocks because their situations look so much like the situation another small oil company was in late in 2022. That company scored my investors a 1,000% gain, and these lithium stocks look like they could be poised to do the same thing…
You see, I’d been following a small oil exploration and production company called Prairie Operating Company (NASDAQ: PROP) that had recently bought up some cheap but really attractive acreage in Colorado. It bought the assets from Chevron, and Chevron was selling cheap because the leases were due to expire sooner than the supermajor could start drilling. Prairie was able to start drilling immediately, though. And the assets immediately became worth far more than the company had paid.
Then came the BIG news: Chevron (NYSE: CVX) was doubling down on its investment in that area with tens of billions more. Then Warren Buffett and Occidental Petroleum (NYSE: OXY) decided to make a huge investment too. And then Civitas (NYSE: CIVI) as well. It was a literal who’s who of the biggest oil companies in the world surrounding this little company I was watching. Prairie, like the best lithium stocks, had a clean balance sheet and strong financials. It, too, was operating in the U.S on a proven resource. And it too was surrounded by the biggest players in its industry.
And so far, Prairie has gone from a stock that cost less than $2 to buy at the end of 2022 and the start of 2023 to a company trading hands for $15–$16 per share today. That’s still undervalued for the operation the team at Prairie put together. But it’s a pretty nice little gain for the investors who took my advice back then.
So I hope you’ll take some time out of your day today and read my report on where and how to find the best lithium stocks. I’ll tell you all about my predictions for the market as a whole and let you in on the three best lithium stocks my team was able to find. And I’ll even give you an opportunity to join my premium investment community, where I share all these ideas (the best lithium stocks, the best oil stocks, the best artificial intelligence stocks, etc.) even before I share them here in Wealth Daily.
To your wealth, Jason Williams After graduating Cum Laude in finance
and economics, Jason designed and analyzed complex projects for the U.S. Army. He made the jump to the private
sector as an investment banking analyst at Morgan Stanley, where he eventually led his own team
responsible for billions of dollars in daily trading. Jason left Wall Street to found his own
investment office and now shares the strategies he used and the network he built with you. Jason
is the founder of Main Street
Ventures, a pre-IPO investment newsletter; the founder of
Future Giants, a nano cap investing service; and authors The Wealth Advisory income stock
newsletter. He is also the managing editor of Wealth
Daily. To learn more about Jason, click here. Want to hear more from Jason? Sign up to receive emails directly from him ranging from market commentaries to opportunities that he has his eye on.