Could Albemarle Be a Millionaire Maker Stock?
Lithium producer Albemarle (NYSE: ALB) is getting hit across its diversified portfolio today. The impact of widespread COVID-19-related shutdowns is set to linger into the second quarter, and likely the rest of the year. The stock is down roughly 50% from its 2017 peak. But that just makes it an even more interesting opportunity for investors that believe the electrification of automobiles is set to take off.
In 2017 investors decided that lithium was a hot commodity, bidding the price higher and higher on the expectation that the world's automobiles would be shifting from gasoline to electricity. As is so often the case on Wall Street, investors got a little ahead of themselves. Lithium prices rose faster than actual demand for the key battery-making metal. Capital investment in the sector, meanwhile, took off because of high lithium prices. That led to a glut of lithium, and prices collapsed. This is a pretty common scenario in the commodity space.
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Source Fool.com
