ALB: Adding to Albemarle Investing Ideas (Long Side)

12/01/17 03:42PM EST

Below is a brief note from CEO Keith McCullough on why we're adding Albemarle (ALB) to the long side of Investing Ideas today:

"Looking for Bullish @Hedgeye TREND ideas from my research analysts that are on sale today on relatively low-volume? How about getting long some Lithium via Albemarle (ALB)?

Here are 3 bullish bullets from Jay Van Sciver's recent Institutional Research presentation:

  • Dieselgate, Emissions Regulations, Negative Margins: One way or another, the big auto companies will be selling more efficient vehicles with larger batteries
  • Demand Growth Not Single Market:  Energy storage demand is likely to come from more than just EVs, with outdoor power equipment to drones to (some) grid applications
  • Only Game In Town: For the foreseeable future, lithium-based battery chemistry looks to face less technology risk than some may fear

Be patient. Wait for things like political headlines to pick your entry points. Buy red,

KM"
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