Stock Market Discussion -- started 03/06/2018 -- updated daily !!!

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In my view, Lithium Americas (NYSE:LAC) stock trading under $5 is a gift. Once sentiments reverse for lithium, LAC stock is likely to go ballistic from deeply undervalued levels.

To put things into perspective, Lithium Americas has a current market valuation of $990 million. In comparison, the after-tax net present value of Thacker Pass asset is $5.7 billion. Purely based on asset valuation, the stock can be a six-bagger from current levels.

However, if we look beyond this, the Thacker Pass has a mine life of 40 years. Once both the phases of the lithium asset are commercialized, the annual EBITDA from the asset is likely at $2 billion. Clearly, operating, and free cash flows will be robust. Further, estimates can change on the upside if lithium skyrockets due to supply-gap concerns in the coming years.

I would therefore buy and hold LAC stock. With commercialization of the Thacker Pass asset due in 2027, multibagger returns are likely before that as the markets discount the cash flow potential.

Thx, MAD. Yes, I'm holding LAC. Will look to add more.

I have noticed that Junk Silver prices are rising.

Fearless leader and others charting transports:

Kind of looks like there's some cracks, no?

Originally Posted by Madison

Fearless leader and others charting transports:

Kind of looks like there's some cracks, no?

This from Stansberry ... I thought transports were down???

Editor's note: Historically, the transportation sector has been a good indicator of things to come in the market.
If stocks seem great but transportation stocks are lagging, it's a warning sign for the overall market. But if transportation stocks are hitting new highs, that means the future of the stock market is bright...

That's why Ten Stock Trader editor Greg Diamond says it's critical for investors to be aware of the current state of the transportation sector in an effort to determine how to navigate the broad market moving forward.

In today's Masters Series, originally from the April 29 Weekly Market Outlook issue, Greg explains why transportation stocks are performing well right now... and details how this uptrend indicates a broad market rally is underway...

Originally Posted by Madison

Fearless leader and others charting transports:

Kind of looks like there's some cracks, no?

Yeah, I'm seeing that too. Trucks vs S&P 500 broke through a trend line going back several years. Rails vs S&P 500 is the lowest since at least Covid.

Check out how discretionary is doing compared to staples too.

It's like we're seeing 2 economies, the Wall Street listed economy is doing okay, while Main Street is doing horribly.

Originally Posted by guitarjosh

Yeah, I'm seeing that too. Trucks vs S&P 500 broke through a trend line going back several years. Rails vs S&P 500 is the lowest since at least Covid.

Check out how discretionary is doing compared to staples too.

It's like we're seeing 2 economies, the Wall Street listed economy is doing okay, while Main Street is doing horribly.

I'm seeing a big divergence in demographics. Baby Boomers bereft of fixed income earnings for 10yrs or more have seen a 2 year resurrection of safe income at circa 5%. Take the conservative percent of institutional and my senior dad (depending on 5% CD's years ago) and the elder generation is seeing a HUGE (for them) increase in disposable income; the Boomers are keeping the economy liquid.

Rick Reader made an interesting point on Bloomberg Week that the economy may actually contract if interest rates go down??

All my best!