I've followed
Sociedad Quimica Y Minera de Chile (SQM) for a few months now with 1 eye; it shows up in our weekly top performers list constantly. This is a volatile "fertilizer" stock (not a pure play however), but the most expensive in my universe so I have not held it, but would be happy to do so at these levels as it's lost 1/3rd of its value in oh, 3 weeks. Since I already own 4 fertilizer I don't see a need to add this, but I do want to highlight the name, and point out both its kicker as a lithium supplier (think future batteries in all these next generation electric cars we've been pointing to in 2010+) @ 15% of sales, and that it is currently sitting at its 50 day moving average. If things really work out in the automotive side, the lithium business should end up actually being the crown jewel here in the long run.
The company also has an iodine business, and since I won't pretend to be an expert in iodine this is a positive
per Motley Fool because...
SQM also boasts the largest iodine production capacity in the world. Iodine is used in medical applications, LCD displays, etcPotash (POT) is also part owner and best of all (ahem) Jim Cramer loves it. ;) So stick with Cramer, and stick with Sociedad Quimica Y Minera de Chile!! (sorry, couldn't resist) Since he mentioned it at $47 it ran to $60 in 3 sessions on the backs of his lemmings. So now you can get it at pre-Cramer prices. Which is why I mention it at $41.50. ;)
Long Potash in fund; no personal position
The company also has an iodine business, and since I won't pretend to be an expert in iodine this is a positive per Motley Fool because...
3 comments:
yea followed this one as well but never gotten in. gotta love the cramer effect though! right up and then straight down.
where'd you see the breakdown of 15% biz from lithium? earnings transcript? i'd like to see their whole breakdown of what % of sales come from each product these days. been a while since i've looked in them in depth. wonder if they're shifting their biz
TM,
SQM earnings seem good, but I guess the 8x forward pe is a little high for this market.
http://biz.yahoo.com/prnews/081028/3771683en_public.html?.v=1
Yep, you can get MOS POT and CF for 2-3x EPS net of cash.
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