Is it too late to buy lithium miner shares?

Such is the appetite for lithium miners on the local market at the moment there were no less than six lithium miner shares at 52-week highs on Thursday.

The shares of Galaxy Resources Limited (ASX: GXY), Kidman Resources Ltd (ASX: KDR), Neometals Ltd (ASX: NMT), Orocobre Limited (ASX: ORE), Pilbara Minerals Ltd (ASX: PLS), and Lithium Power International Ltd (ASX: LPI) all reached 52-week highs as investors continue to fight to gain exposure to the industry.

Is it too late to buy the lithium miners?

As a shareholder of Galaxy Resources I am delighted to see its shares continue to defy my expectations and climb higher.

But whilst it was arguably a bargain buy back July, I’m not sure the same can be said for it or any of its lithium miner peers today. At best I think they are about fair value, at worst a touch overvalued.

In light of this I believe they ought to be classed as holds now and would suggest that investors wait for a potential profit taking pull-back before investing.

And if and when that opportunity arises, I think investors should invest with a long-term view and not for a short term trade. Thanks to the rise of electric vehicles and renewable energy I think the majority of these shares have bright futures and the ability to generate significant free cash flow in the future.

Ultimately, this could make them some of the more rewarding investments in the resources sector over the next decade.

Finally, if you like shares like the lithium miners then I think you'll love these revolutionary shares which are disrupting their respective industries.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources Limited. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.