WHAT’s UP GUYS, BEN HERE AND WELCOME TO MOTIVATION 2 INVEST,
TESLA is a Stock which has continued going to the moon despite criticism of a bubble like valuation.
With it’s share price now over, $1650 per share.
Some investors are hesitant to jump in the stock at such a high price…so another way to play this electric vehicle boom and exuberance is to invest into the raw materials which all these Million of batteries will require.
ELON MUSK Recently stated that
The real limitation on Tesla growth is cell production at an affordable price. That’s the real limit,” he said, adding the company would expand its business with battery-partners Japan’s Panasonic Corp., China’s CATL and “possibly with others.”
“Tesla will give a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way”
SO WHICH NICKEL MINER COULD TESLA AWARD THIS MAJOR CONTRACT to and Which Nickel Miner may they even acquire!
IN this video we’re going to find out! As I deep dive into my top 5 Nickel Mining stocks and overview why the Nickel Market could be about to BOOM!
WHY IS NICKEL IMPORTANT?
There are currently over 7.2 million EVs on the road, and, according to the International Energy Agency, the figure is predicted to reach 245 million by 2030, representing an increase of more than 30-fold.
Of course all these Electric Vehicles will require batteries.
WHAT ARE BATTERIES MADE FROM?
Two of the most common batteries, nickel cobalt aluminium and nickel cobalt manganese, use 80% and 33% nickel respectively.
Of course the More EV Batteries which are required, the more Nickel will be required and thanks to the laws of supply & demand.
If demand increases above supply, Prices of Nickel will increase.
However, there is a caveat to this
stainless steel producers are still by far the biggest consumers of the Nickel, so the price will move in tandem .
Nickel is commonly combined with other metals to produce alloys with a combination of properties that provide both ductility and strength at high temperatures.
Through its ability to withstand high heat, nickel minimizes corrosion, allowing the metal to be used for several decades without replacement. Thus, nickel is used in harsh environments such as jet engines, offshore installations and power generation facilities.
The cost per tonne dipped to US$11,000 at the end of March but has since recovered to around US$14,000 per tonne.
Economic factors will continue feed into the calculation, as will growing speculative investor demand, analysts have said.
And, of course, we should talk about Indonesia, the world’s largest nickel producer, which spooked the market by instituting a ban on ore exports.
The consultancy Roskill, which tracks metals markets, sees this as significant, and it feeds into its forecast that primary nickel consumption will increase by 4.4% a year over the next decade.
“Thus, a substantial amount of new nickel units will eventually be required to meet demand,” it said.
Top 3 NICKEL MINING STOCKS?
Now lets dive in to my top 3
The first coming at at number 3,
VALE OF BRAZIL?
This is one of the largest Nickel Miners in the market & is actually the 2nd largest mining company in the world.
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DIVING INTO THEIR INVESTOR RELATIONS
2. Sherritt International
Sherritt International bills itself as one of the world’s largest producers of nickel from lateritic sources, and has operations and investments in Canada, Cuba and Madagascar.
Base metals-focused Talon Metals’ main asset is the Tamarack nickel-copper–cobalt project in Minnesota. Which has a HIGH GRADE NICKEL DEPOSIT WHICH IS EASIER TO EXTRACT.
That is a key element as it means it’s more economical to extract.
The asset is a joint venture with Rio Tinto (ASX:RIO,LSE:RIO,NYSE:RIO), and Talon has the option to earn up to a 60 percent interest in the property.
A reportedly signed deal between the Tesla and Glencore (LON: GLEN) in June has cast doubts on the company’s statement that it’s close to eliminating cobalt from its batteries altogether.
The contract would involve supplies of 6,000 tonnes of cobalt from the Democratic Republic of Congo for Tesla’s new Shanghai factory.
DIVING INTO THE INVESTOR RELATIONS FOR GLENCORE
FINAL THOUGHTS?
Overall, it’s clear that the future is going to be electric and thus there are many ways to play this Growing market.
Which stocks have I invested into?
I have actually invested into Glencore as it’s well diversified & undervalued despite having with current contracts with Tesla.
I also really like Talon Metals if you wish to invest into a high risk micro cap.
Be sure to check out my Previous Videos on Lithium Mining another great Raw Material Used by Tesla!
Currently, there are three major suppliers: Vale of Brazil, Russia’s Norilsk Nickel and international giant BHP.
Will Tesla Acquire these Three Junior Lithium Mining stocks!??
What’s up guys, Ben here and welcome to motivation 2 invest!
Tesla is a stock which has defied critics and continues to go to the Moon!
But to reach their goal of over 10 million cars per year & become bigger than Toyota they will need a hell of a lot of BATTERIES!!
Elon Musk also plans to Manufacture a 1 million-mile battery which is integral to Musk’s plans for fleets of ‘robotaxis’ and long-haul trucks, both of which would strain the ranges and lifetimes of the current Li-Ion batteries found in Tesla’s passenger vehicles.
Tesla’s best performing models have a maximum single-charge battery range of 370 miles – just short of the distance between Baltimore, MD and Boston, MA. – and a lifespan of 300,000 – 500,000 miles. This is impressive, given that the average lifespan of a car in the US is 150,000 miles, or roughly 11 years using the AAA annual average of 13,500 miles per year.
And It’s not just the car business,
Tesla’s Gigafactory’s has an Instantiable thirst for Batteries Materials for it’s Energy Storage systems such as the Tesla Powerwall & Grid Energy Systems.
SO WHAT ARE THESE BATTERIES MADE FROM?
Well, the composition is that of Lithium Nickel Cobalt Aluminum Oxide
In the Majority of EV batteries,
Nickel Is the most commonly used followed by LITHIUM in terms of Cost (Not Quantity). They have plans to phase out COBALT, using a process called “Cobalt thrifting” to reduce cost & increase range.
Elon Musk has Made many recent comments telling Miners to Mine Moe of these raw materials!
I recently did a Video on the BEST NICKEL MINING STOCKS & My TOP LARGE CAP LITHIUM MINING STOCKS TO TAKE ADVANTAGE OF THE EV BOOM!
BUT IN THIS VIDEO, I’m going to Reveal my top 3 Junior Lithium Mining Stocks which Tesla Could potentially Acquire! Which would mean huge upside for investors maybe even 10x!
So without further aideu LETS DIVE IN!
Lithium Americas Corp
Kicking things off at Number 3 is Lithium Americas Corp. Ticker symbol LAC on the NYSE.
This is Toronto Based Lithium Mining Company with Lithium Mining projects in USA & Argentina.
Coming in at number 2, is Piedmont Ticker Symbol PLL An emerging lithium company focused on the development of its 100%-owned Piedmont Lithium Project in North Carolina. Which would be just over a days drive to the planned Texas Gigafactory. (1,300 miles)
Bacanora Lithium Ticker symbol BCN listed on the London AIM Stock Exchange.
The Company is achieving this through its investments in two key projects, the Sonora and Zinnwald Lithium Projects in Mexico and Germany respectively.
Tesla Gigafactory in Sparks, Nevada is located a days drive, just over 1000 miles from the Sonora site in Mexico.
Another company, which has the biggest lithium deposit in Sonara, is Bacanora Lithium, which is Aim listed.
Huge backing from Ganfeng Lithium, and offtake agreements already in place. Production starting in 2023. Probably the best junior lithium stock right now.
FINAL THOUGHTS:
Overall, It’s clear that the world is going electric and with companies like Tesla promising to take over the world with 10 million cars promised.
They will need a hell of a lot of batteries, which will of course need the Raw Materials!
These Lithium Mining stocks which I outlining in this video, are good targets for an acquisition or major Partnership with TESLA…which could mean a massive upside for investors.
But remember this is NOT FINANCIAL ADVICE, Investing in Junior Mining stocks can be extremely risky so don’t invest any money which you can’t afford to lose.
WHAT ARE YOUR THOUGHTS ON THE JUNIORS LITHIUM STOCKS I mentioned in this video, Which do you think is most likely to partner with TESLA
There are two main methods of investing into GOLD,
PHYSICAL GOLD:
The first is to purchase Gold coins or Gold Bars Physically. Or even in the form the Jewellery.
Hedge during a crisis.
The Benefit of this is should the entire MONETARY SYSTEM COLLAPSE as Ray Dalio is saying could be a possibility.
Then you have the gold physically, so if we reverted back to a Hard Money backed currency. Then this would become even more valuable.
To a greater extent Physical gold is extremely useful during times of war or when you are unsure about the stability of the country or the financial system.
For example, If a Government became extremely corrupt or was taken over by a rebel party.
They may attempt to own all the cash in the banks.
If you have the physical Gold, you can pack this into a bag or ship it to a foreign country for safety.
The UK government even shipped the physical gold from Bank of England’s Vaults to Canada during the war.
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Of course this an extremely unlikely set of circumstances if you are based in a Modern country with a government you trust.
Another rare scenario which will make physical gold a vital hedge would be if the Exchange Traded Fund institute or ETF Financial Markets collapsed.
A fund is just a collection stocks or securities which track a particular market this could be an Index like the S&P 500 or a Commodity like GOLD.
For example, Imagine the I shares S&P 500 ETF,
iShares, is part of the BlackRock Group. This investment firm has purchased the stocks in the S&P 500 in order to track this index.
But imagine one day there was a major financial crash likes say a hack or government takeover and NOW exchanges weren’t allowing you to sell your ETF!
Your wealth would be effectively trapped.
RISKS WITH PHYSICAL GOLD?
However, During normal non crisis circumstances the purchase, sale & storing of physical gold can be more time consuming, Laborious and dangerous.
For example, If I wished to purchase some gold coin I would have to order it from a broker first. Then verify that the physical gold was real, unless you just trusted the firm at face value.
Then you need to store this physical gold.
HOW DO YOU KEEP THE PHYSICAL GOLD SAFE?
If you have just a few gold coins You could stick it under your mattress I suppose but more likely you would need an extremely secure & hidden safe or vault.
But then what if your house gets robbed or the Vault you have paid gets robbed.
We have all seen those movies when they take the home owner to their safe & ask them for the code & gun point!
And we have all seen Oceans 11.
LIQUIDITY?
The other issue with gold is liquidity if you wish to sell your physical gold bars or coins you need to find a buyer.
On a practical note you may even need to smelt down the gold into smaller units in order to sell.
To find a buyer, You may have to go to a Jewellers or gold market…but during a crisis situation would they be open?
Also if you find a suitable buyer, you have to be careful of scams & Robbery.
Method 2. GOLD ETF:
The First type of GOLD ETF is the Physical Gold ETF this is where the investment firm say I shares has purchased PHYSCIAL GOLD which is stored in a Bank Vault in Switzerland.
HIGHLY LIQUID:
The I SHARES PHYSCIAL GOLD ETF tracks the gold price of this physical gold in the vault and then creates a market to allow shares in this fund to be easily bought or sold to anyone in the world.
The GOLD IS DIRECTLY owed by I Shares or Blackrock & never changes hands but the shareholder owns the FUND which REPRESENTS THE GOLD.
Thus we do own it but through an INTERMEDIARY party, which is usually Backed by the government or some type of FINANCIAL SYSTEM. Which is an insurance or risk whichever way you wish to look at it.
BE CAREFUL WITH SYNTHETIC ETF’s which don’t actually own any physical gold.
These track the gold price by investing into futures or options. Which gives you the option to buy at some GOLD at a future price point.
These FUTURES ETF’s are very risky so I would not advise investing into them unless you have a extremely thorough understanding of exactly how to market works
SO WHICH METHOD of GOLD INVESTING IS BEST FOR YOU?
Physical Gold or Physical GOLD ETF.
I would only recommend buying some physical gold if you have a vast amount of wealth to store & you have faith it will be safer in your house then in the financial system.
For most people a PHYSCIAL GOLD ETF is the most practical.
Even the great Millionaire shark tank investor uses a physical gold ETF to allow his position to trimmed to 5% always.
My favorite is the I shares Physical Gold ETC or Exchange traded commodity.
Hey Guys, Ben here from Motivation2invest due the recent health Pandemic, social distancing and subsequent lockdown of the planet.
Governments from around the world have printed Trillions of dollars worth of currency! From the $65 billion dollar’s in the U.K to the $2.3 Trillion dollars in the USA!!
Now, all though this may seem great in short term as a way to prop up the economy but this has got to come from somewhere!
In the past when vast’s amounts of currency was printed this led to HYPERINFLATION!
Where the value of paper currency effectively going to zero!
GOLD has always been a natural hedge for investors during a recession but now it seems as if it’s shining even more than normal!!
So in this video, I’m going to discuss why
This time Gold is not just a safe bet, but many investors have stated it will rise to an incredible $10,000 per ounce!!!
LETS DIVE IN!!
WHY is investing into GOLD unique?
Gold has been worlds most reliable currency since Civilization began, it was first recorded to be used as a currency in 600 BC…before being adopted by Egyptians, Romans and then of course modern civilisations.
Gold was used as a currency due to it’s unique properties, this glowing mental can be melted down & forged into gold coins & shapes.
It’s also anti corrosive so will literally last thousands of years without rusting or corroding like other metals.
Tutankhamen’s tomb alone they found that his coffin was made from 1.5 tonnes of gold
However, one of the main properties of gold is it’s rarity with all the total amount of gold ever mined adding up to just over 171,000 tonnes!
To put things into perspective, all the gold in the world could be fit inside a cube with sides of just 20m (67ft)
This would reach 9.8m above ground level if exactly covering Wimbledon Centre Court.
GOLD AS A CURRENCY?
You may not know this but most currencies are no longer backed by gold as this used to be.
We used to have what’s called
Hard Money (Real Money backed with real assets) gold, copper, silver, nickle. (Coins)
Claims on Hard Money (Paper Money, Bank Notes)
Read on a old $100 bill it says: “100 dollars in Gold coin Payable to the bearer on demand.”
THESE days however, it is a FED based FIAT currency. It’s based on the FAITH we have in the economy.
WHY DID GOVERNMENTS STOP BACKING THEIR CURRENCIES WITH GOLD?
To help combat the Great Depression. Faced with mounting unemployment and spiralling deflation in the early 1930s.
The U.S. government found it could do little to stimulate the economy. To deter people from cashing in deposits and depleting the gold supply, the U.S. and other governments had to keep interest rates high, but that made it too expensive for people and businesses to borrow.
So in 1933, President Franklin D. Roosevelt cut the dollar’s ties with gold, allowing the government to pump money into the economy and lower interest rates. “Most economists now agree 90 percent of the reason why the U.S. got out of the Great Depression was the break with gold”
(SOUND FAMILIAR?)
However, the U.S. continued to allow foreign governments to exchange dollars for gold until 1971, when President Richard Nixon abruptly ended the practice to stop dollar-flush foreigners from sapping U.S. gold reserves.
What’s the problem?
WEALTH CAN ONLY BE CREATED BY PRODUCTIVITY (GOODS/SERVICES)
Wealth is not just cash, cash is just one type of security used to hold wealth. There is also stocks, bonds, property, businesses etc.
Paper FIAT Currency is backed by a promise by goverments, basically like an IOU.
With governments Printing money like crazy and debts rising massively without the backing of real wealth creation…then the whole cash system can become worthless.
Like when hyperinflation occurred in Germany back in the 1920’s and more recently in Venezuela.
According to Ray Dalio, one of the greatest investors we are also coming to the end of the long term debt cycle.
Which basically means the methods we use to stimulate the economy no longer work & THUS A NEW CURRENCY has to be created…a return to hard money which is backed by gold!
Due to this and the fact that gold is a natural hedge during recessionary times many influential investors have predicted gold to rise to $10,000 per ounce!!
Historic returns of investing in Gold?
And it’s not just during recessions that gold prices have risen, they have been consistently rising from many years, through boom and bust.
Opposing views?
Warren Buffett is not a big fan of gold, due to fact that it doesn’t produce anything & pay’s no dividend.
FINAL THOUGHTS?
In the words of Ray Dalio “If you don’t invest into gold, you don’t know history”.
Which I do agree with to a certain extent and that it should be at least a small part of every investors portfolio.
Conversely, I also agree with Warren Buffett…with the fact that gold doesn’t produce anything and I would much rather own the equivalent amount of stock.
So gold only makes up a very small amount of my own portfolio, with the majority of mine in stocks of great businesses.
However, I do believe gold can be a great hedge against recession’s thus I may increase my allocation in the future.
How to invest into gold?
You can invest into gold, by purchasing the physical coins and bars however, this is very old fashioned and clunky.
I much prefer investing into gold using an ETF such as the
I SHARES PHYSICAL GOLD ETC (SGLN)
Looking at it’s past performance & expense ratio. (screen capture)
Ben Here Due to the recent global crisis, the planet has been put into lockdown, Economies have been halted and thus the stock market has taken a real hammering!
Is this the end of the world? Or could this be a great time to invest in Some Bargain Stocks!?
In this video we’re going to find out as I reveal my top 5 TURNAROUND GROWTH stocks for the Brave Investor!
Peter Lynch is one of the greatest investor of all time who beat the stock market by almost double as the Manager of Fidelity Investments Magellan Fund.
He states the faster a firm is growing, the higher the P/E multiple you should be willing to pay for its stock.
He states Fast Growers as stocks with (Earnings per Share ) EPS growth rates of at least 20 percent per year.
So in this video I’m going to outline some traditional growth stocks but with more of a flavour towards TURNAROUND INVESTMENTS.
5. Delta Airlines
The first potential turnaround of my list is the 3rd largest US Airline Delta.
With the travel industry been hit the hardest due to the global travel restrictions…it’s an industry with some serious challenges to over come.
Delta Airlines also wasn’t helped by Warren Buffett Un characteristically investing more into Delta Airlines before selling his entire airline portfolio!
So WOULD it BE CRAZY TO INVEST INTO DELTA AIRLINES?
In the past month, Delta Airlines stock has fell from nearly $60/share to just over $20/share. With a Price to Earnings ratio of less than 4!
This makes it a true value stock, with a high upside potential but a lot of risk in the short term.
The issue is Delta airlines is still $100 million per day. If it sustains this current rate it will likely spend I $6.75 billion in the second quarter and will likely run out of money sometime in Q3!
However, despite the challenges Delta airlines is arguably one of the best places Airlines to Whether this storm and is in a better financial shape than many of the other airlines!
I personally have a very very small stake in delta, but I understand why many investors will chose to wait on the sidelines and see how things play out.
4. Tesla Stock
Next on my list is one of the hottest stocks right now! Tesla’s first quarter earnings shocked the world as it showed surprisingly tremendous results despite
Wall Street expecting a loss of 26 cents on revenue of $6.16 billion.
Tesla actually reported an adjusted profit of $1.24 on revenue of $5.98 billion.
Tesla has faced many challenges in reopening there California Factory, and they even filed against Alameda County.
Despite challenges Tesla stock has shot up Rapidly and I actually found my position in TESLA up by 74%!
Elon Musk even tweeted “Tesla Stock Is too high” which caused a dip before regaining momentum.
I actually have a lot of faith in Tesla as a Tremendous long term company for growth with Exceptional Management & Drive by ELON MUSK.
However, I felt it’s current increase of over 74% was unjustified given the current situation with the health crisis & the rough economic conditions with over 20 million US citizens left unemployed.
I managed to get Tesla at $475 per share, and thus gained 74% in in the past few weeks. So I decided to sell half of my stock at $838 per share.
It was clear that $838 is nearly the same price as before the global crisis, which I think is crazy!
I still have a small amount of Tesla stock left but I hoping for another dip and will buy hard if this comes.
Tesla is a very volatile stock, so it’s a traders playground!
3. Arista Networks
2. On the beach
1. Live Nation
Live Nation Entertainment (NYSE:LYV) is the world’s largest promoter of live events, it operates over 270 venues from theatres to arenas). It also has the Ticketmaster platform. They also own 4/5 of the largest music festivals in North America. Back in 2016 live nation has over 71 million people grab a ticket to one of their shows. Of course the global crisi & social distancing issues have affected almost every business in a negative way but the Live events industry has been hit one of the hardest.
Live Nation was once a stock market hero, previously it had climbed from a price of just $10 per share at the start of 2013 to over $70 per share at the start of 2020. Driven by the growth of the concert attendance industry & the consumer trend in which people prefer to spend money on experiences over physical possessions.
Mark Cuban the Shark Tank Billionaire did stated he had invested into Live Nation during this latest crash. However, on an interview after he also expressed reservations about how the industry will recover.
The good news is Live Nation doesn’t have any major debt maturities in 2020 & most likely has enough cash on hand to whether this storm!
If live nation can recover to previous highs you could double or even triple your investment, However…for me it’s one to watch at the moment and there are much safer companies to bet on in the short term.
For MY FULL stock analysis on the turnaround stocks mentioned above, check out my TOP STOCK PICKS FOR 2020 Playlist on the Link below!
SO ARE YOU BRAVE ENOUGH TO INVEST IN SOME OF THESE POTENTIAL TURNAROUND STOCKS.
