Top 5 Stocks for November

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

Sociedad Quimica y Minera (SQM), our Chilean chemical giant, is still one of my favorite stocks. SQM has a huge share of the lithium market and should see big sales as demand for this material ramps up in the coming months.

In early October, the company announced its decision to lower its lithium prices by around 20% from current levels in order to accelerate demand recovery. You may think that a company charging less for its product is a bad sign. But as with almost everything in business, it’s a supply and demand game.

SQM’s plan is to boost demand significantly enough that it sells more lithium and subsequently makes even bigger profits than if it left prices unchanged. What’s more, it allows for new customers by providing this crucial element at lower cost. Many of the iconic devices of the 21st century use lithium batteries, including cell phones, laptops, iPods and hybrid vehicles. Encouraging innovation will help ensure SQM’s revenue stream for the long term.

NEXT – Top Stock #5