Livent Corp. is integrated within the Lithium firm. Lithium Livent produces lithium, a chemical substance that is used as raw materials for products. Lithium is used in producing lithium polymers, lithium batteries, and many more.
The use of lithium is very popular, especially in the metal manufacturing industry. The demand for lithium by metal manufacturing companies is so high. Lithium-made metals are quickly mined and then sold on the market.
Not only that, it is expected that the demand will increase. This is because many people use lithium-made batteries, metals in the automobile and telecom sectors. It doesn’t cost much to buy lithium, and its manufacturing techniques have improved.
Therefore, the stocks of Lithium Livent will increase due to many people buying its products.
Investor and trader, Nikit Shingari, sheds light on the rise of Lithium stock. Nikit is an avid investment expert and computer guru.
What is Lithium?
People mine lithium from the crust of the earth. It is a natural resource that has distinct physical attributes which makes it light in weight. Because of its lightness, it is used as raw material for many things.
Lithium battery is also the technology that powers electric vehicles, computers, phones, and many more. The batteries are highly efficient and last longer. There is a large market base for selling and buying lithium.
Covid-19 disrupted lithium’s supply chain channels. Hence, the demand and price increased.
In America, the invention of electric-powered vehicles has increased the demand for lithium.
In the Asian continent, a kg of lithium is sold at 35-40 dollars. This can rise to 49 dollars per kg later on.
Lithium Stock Value
Before the market opened earlier, Lithium Livent stock went down at a four percent rate. Lithium Livent stocks belong to the Livent Corporation, a subsidiary of Lithium company. In a positive twist, the company’s value rose again. Its current shares were more than the previous share price. This prompted celebrations among the investors and stakeholders. The company’s annual Q4 revenue report in 2021 showed significant improvement when it was revealed.
Contrary to earlier predictions, Lithium’s fourth quarterly returns were close to 123 million dollars. Financial analysts previously estimated that Lithium Livent will only earn 106.5 million dollars. However, the current returns far surpassed their expectations. In addition, income earned per share was 0.08 dollars. This is 0.01 dollars more than the predicted 0.07 dollar income.
While this is a cause for celebration, Lithium management is being cautious. They prefer to make plans so that the company can maintain its current rise and improve too. This is understandable because if they don’t improve their performance, the shares can fall at any time.
Future Predictions of Lithium Livent Stocks
For the year 2022, Lithium Livent hopes to make its mark and have more earnings. The company predicts that the 2022 Q4 income report will be between 540-600 million dollars. If this prediction comes through, it will surpass the previous 2021 revenue. The management is hopeful that the company will earn more at the end of the year 2022.
On the other hand, the 2021 revenue needed adjustment due to amortizations, taxes, and so on. These had to be subtracted from the total money generated in 2021. Whatever remained after subtraction would be the 2021 revenue. Millions of dollars were adjusted from the total revenue generated in 2021. Hence, the company hopes to earn more by 2022.
What does it mean for investors?
The company ending 2021 on a good note and beginning 2022 with an increased value is a good thing. Investors were happy to hear this because it means their share values will increase. That means they didn’t lose and invested in vain.
Future investors are eager to buy Lithium Livent stocks and build a strong portfolio. The newly predicted revenue has assured them that their investments will yield good returns.
However, future investors should not only consider the prediction for investment decisions. They should constantly check how Lithium is progressing and performing. This includes the firm’s success in expanding Lithium in other regions. Will the expansion be successful or not? If the expansion is successful, it will be a bonus to the company. This is because the company will make more profit and share value will rise. Whereas, if the expansion is not successful, money will be lost and the company will suffer a setback. Additionally, the share value will decrease, and the investors will be affected.
Lithium Investment Tips
The investment method is not a direct one because lithium is excluded from the stock market and futures trading.
Those who wish to invest for a long period can buy stocks from the producers. They can also do it by exchanging trade funds.
Other options include buying lithium ETFs. ETFs are less risky than buying shares. They are diverse with different ways of generating returns. ETFs investors don’t need to monitor lithium progress every time.
In conclusion, if you are knowledgeable about stock market trading, then you can buy lithium stocks. This will add to your earnings in the long run. However, remember the risks that come with stock buying.