The Big News That Sent This Lithium Stock Tumbling 17.8% in May
May turned out to be the worst month for investors in Sociedad Quimica y Minera de Chile (NYSE: SQM) as the stock slumped 17.8%, according to data provided by S&P Global Market Intelligence. Much to investors' relief, though, the stock reversed course swiftly and is already up 9.8% in June, as of this writing. What's brewing?
Lithium stocks took a hit earlier in May when Albemarle (NYSE: ALB) projected only a modest improvement in its 2021 performance and left its full-year guidance unchanged despite 12% growth in its first-quarter sales. The lithium industry pays close attention to the world's largest lithium producer's performance and views.
Mid-month, a wave of fear ran through mining companies operating in Chile. Left-wing groups won the vote to rewrite the constitution, raising fears that Chile's existing government could be overturned in elections later this year in favor of a leadership that's calling for higher mining taxes and greater state control over privately owned mines.
Source Fool.com