Top 5 Stocks for September

Top Stock #4 – Sociedad Quimica y Minera (SQM)

Sociedad Quimica y Minera (SQM) is one of my favorite stocks right now and is perfect for just about
any portfolio.

Based in Chile, this company provides a host of chemicals for agricultural, health care and industrial applications. SQM is also a world leader
in lithium
— the material that is used in batteries for hybrid cars. Lithium batteries charge much faster than alternative power cells, and that makes
this material crucial to any low-emission vehicle.

Fuel efficiency is now one of the most important aspects of any vehicle, and demand for fast-charging lithium batteries will soar in the automotive
market over the next 12 months. Chevy’s Volt will debut late next year with lithium cells under the hood, and Toyota is racing to bring a lithium-powered
electric car to the market soon after. This will add up to big profits for SQM.

SQM reported second-quarter profits of 32 cents per share in mid-August and revenues of $344.8 million. While these numbers are down a bit over
last year, the company continues to strongly outperform its competitors thanks to its 30% share of the global lithium market.

While the company’s lithium shipments fell 35% the first half of this year, the first wave of hybrid electric vehicles that use lithium-ion batteries
are starting to hit showroom floors. That means as auto sales recover thanks to the "cash for clunkers" program, lithium demand will only
firm up in the coming months as more hybrids hit the road. And don’t think lithium is solely used in hybrid vehicle power cells — portable electronic
devices like laptops and smartphones also frequently use lithium batteries.

It’s also important to note that compared with its competitors, SQM is in a financially better position long-term due to its low debt position.

The stock is up about 30% since I first recommended it in the March issue of Blue Chip Growth, and I still
rate it a good buy.

NEXT: Top Stock #5 – AutoZone