March 2, 2023 | Daily JAM, LICY, Millennial |
Today’s Quick Pick is Li-Cycle Holdings (NYSE: LICY). Li-Cycle is in the start-up stage of building a hub and spoke system to recycle lithium batteries. As more electric vehicles enter the market, companies that can recycle the lithium from their batteries has drawn a lot of investment dollars, both because fulfilling the green potential of electric vehicles requires closing the battery loop and because recycling provides a supply increasingly expensive of battery materials such as lithium, cobalt, and nickel. And there are new incentives in the field because the Inflation Reduction Act included money for loans/funding for recycling companies. Most of the new entrants are private. One of the few publicly traded battery recycling companies is Li-Cycle. Li-Cycle started as a SPAC, a formerly popular way to take a company, but now the market is largely shunning SPAC companies out of fear that they will run out of capital before they hit breakeven. However, Li-Cycle just announced it had received conditional approval for a $375 million loan from the Department of Energy, allowing it, by my calculations, to finish their Rochester hub. The hub recovers marketable lithium, cobalt, and nickel from the black mass that the company collects from batteries. Once the hub is completed, it will go from a cash drain on the balance sheet to a generator of cash. This is a risky stock. The shares are down 57% since I added them to my Milliennial Portfolio on November 15, 2021 but they are up 21% for 2023 to date as of March 2. This one is for the strong of stomach willing to take a risk and hold on to it through dips as the company starts to generate revenue and earnings.
September 20, 2022 | ALB, Daily JAM, LICY, TSLA |
It’s time to move on from relief/enthusiasm/grudging acceptance of the $369 billion in the Inflation Reduction Act for programs designed to speed up the transition to clean energy and to de-carbonize the economy. The surprise–and in many quarters–appreciation that the United States is doing anything–and it’s a big anything–about climate change has led to big rallies in the stocks of electric vehicle charging companies and hydrogen-economy pioneers. For example, EVgo (EVGO), obviously, I think< an electric vehicle charging stock is up 48.14% in the last month as of the close on August 17. Plug Power (PLUG), one of those hydrogen economy pioneers, is up 84,15% in the last month as of the August 17 close.But I think it's time to go from the general amazement stage to an examination of what companies--and stocks--are actually going to be winners because of the Inflation Reduction Act. (And I say that not only because some of these early winners have started to show some weakness--profit taking perhaps. But also I would pay attention to these near-term trends. EVgo, for example, fell to $10.74 a share on August 17 from $12.02 on August 16. That's a 10.6% tumble.) The bill as finally passed is a masterpiece of compromises and add-ons that mean that many of the top line dollars won't wind up where recent headlines have suggested. My take?
May 16, 2022 | Daily JAM, LICY, Videos |
My one-hundredth-and-thirty-fifth YouTube video “Trend of the Week: Another Battery Investment” went up today. This week I’m looking at investments by fossil-fuel companies, such as Koch Industries, in battery technology stocks. Koch’s venture arm has made several investments–committing significant amounts of cash–in battery companies. Koch Industries isn’t alone. Big commodity trader Glencore seems to be following the same course. That company recently committed $200 million toLi-Cycle (LICY), a stock I’ve covered before and which has been pounded along with other battery and alternative energy stocks. The question for individual investors is whether they have as long a time horizon–and as big a tolerance for risk–as these big energy and commodities players.
May 2, 2022 | CMI, Daily JAM, DNNGY, ES, FQVLF, JCI, LICY, Long Term, SCCO, Special Reports, Top 50 Stocks |
All you have to do to find the high profits that will make the risk of investing in climate change stocks worthwhile is to focus on sectors (1) where the rewards are solid and the risk is quantifiable, (2) where companies are making profit the old-fashioned way by building out networks and then charging high rents to use them, by (3) carefully targeting a few technologies (wind and solar and hydrogen and electric cars) that will be part of any mix of solutions, and (4) by investing in bottlenecks that are likely to drive prices up (and provide good profits for companies that resolve the bottleneck.
December 14, 2021 | Daily JAM, LICY, Millennial |
Li-Cycle Holdings LICY), a recycler of rechargeable lithium-ion batteries, has entered into a non-binding letter of intent to supply LG Chem, Korea’s largest diversified chemical company and LG Energy Solution, a leader in the market for lithium-ion batteries for electric vehicles, with 20,000 metric tons of nickel from recycled waters over the 10 year beginning in 2023. Upon signing of the final agreement, LG Chem and LG Energy Solutions will together make a $50 million buy of shares in Li-Cycle.
November 13, 2021 | Daily JAM, LICY, Millennial |
On Friday, November 12, I made lithium battery recycling company Li-Cycle Holdings my Quick Pick video. On Monday, November 15, I will add it to my Millennial (for those who have more time than money) Portfolio.
November 12, 2021 | Daily JAM, LICY, Videos |
I’m starting up my videos on JubakAM.com again–this time using YouTube as a platform. My sixty-eighthYouTube video “Quick Pick Li-Cycle Holdings” went up today.
