Jim Cramer Says Investors Should Watch These Two Lithium Stocks

On Wednesday, CNBC’s Jim Cramer offered investors two lithium stocks he thinks should be on their shopping lists.

“Lithium is everywhere, folks – it just takes at least eighteen months to start production, and that’s about the time since prices started skyrocketing. We already have these small players who are gearing up to go online later this year. …Of course, once more people come in, business will get worse,” the “Mad Money” host said.

“I’m just endorsing Albemarle and Livent for a trade. I like the lithium here and I think these two have more upside because they’ve been held back by the bad stock market, but you have to be ready and willing to ring the register on the way, because this boom certainly won’t last forever,” he added later.

Cramer said he liked both stocks given their resilience, although the market has been rocked by a range of economic and geopolitical factors in recent weeks, including inflation, the Russian-Ukrainian war, Covid lockdowns in China and more.

The Dow Jones Industrial Average fell 3.57% on Wednesday while the S&P 500 fell 4.04%. The Nasdaq Composite fell 4.73%.

Albemarle shares fell 1.36% while Livent shares fell 2.13%.

Cramer also pointed out that both companies reported higher earnings in recent quarters and raised their full-year guidance.

“If you want to gamble the exorbitant price of lithium, I say don’t think about it too much. The easiest thing to do is buy Livent or Albemarle because we already know they’re doing well, and despite those moves stocks aren’t that expensive based on the new earnings guidance,” he said.

As for players in the lithium industry that investors should stay away from, Cramer said he would not approach Standard Lithium, noting that it was “bombarded” with short sales.

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