Missed the boat on lithium? One stock that could be better
Investing
By: Greg Maxwell
If the price of skyrocketing commodities leaves you thinking you've missed the boat, here's something you may find interesting… and potentially lucrative.
A way to invest in mining…
Potentially profiting off different mines around the world…
Without tying your fortunes to any single commodity… mine or mining company…
And to be clear…
This is not buying an ETF or an index fund…
Or pouring money into some risky options or futures play.
It's simply buying one little-known ASX stock.
A stock we think is uniquely positioned and has the potential to profit… no matter what individual commodity is booming.
That's iron ore, gold, coal, silver, copper, cobalt…
And of course, lithium.
You name it… if we dig it up, we think this company stands to profit.
In fact, we think this stock has the potential to be the best long term "mining" play on the ASX right now.
And there's something else that makes this so attractive for investors…
Because it provides a way to "unhook" your growth from different commodity booms and busts…
Let me explain…
Take the hottest commodity in the playground right now… Lithium.
Right now, more and more battery producers need lithium to make electric vehicles and large-scale energy storage…
And when the supply of lithium stays the same it's only natural that the price will go up… Skyrocket even.
Meaning the share price of companies digging it from the ground can also shoot up.
Yet, what happens when other mines produce more lithium?
Or demand for lithium for whatever reason, falls through the floor?
What then?
Of course, no one has a crystal ball – but it's fair to assume that any drop in demand will lower the price and potentially affect lithium stock prices, especially when the boom ends.
Where does that leave long term investors?
Which is why we believe this little ASX stock is such a compelling buy right now.
That's because it's riding an even bigger megatrend than lithium…
Worth an estimated US$19 trillion.
You see, this "mining" company isn't a mining company at all.
At least they don't get their hands dirty digging stuff out of the ground…
Or exploring new sites.
You see, they're deep into technology…
Technology that's riding an even bigger boom… A boom that's potentially unstoppable…
Artificial intelligence.
Right now, whether you know it or not, AI is sweeping across every industry in the world.
And the few companies that can harness its potential now, could see their stock price climb.
All the biggest companies in the world are racing to develop AI technology.
Experts predict that just investment in artificial intelligence research and technology will reach an incredible US$500 billion by 2024.
When you compare that to the entire Australian mining industry at around $206 billion…
Well, you start to get an idea of just how big this opportunity is.
It's clear: companies that embrace this now could dominate their competitors potentially for years to come.
Shark Tank and tech billionaire Mark Cuban admits,
"The companies that have harnessed AI the best are the companies dominating,"
Where he predicts a two-tiered business environment as a result.
"There's two types of companies: those who are great at AI and everybody else,
And when some researchers say AI will have a projected US$19 trillion dollar impact on the economy by 2035…
Every company in the world will need to take this seriously and adapt to this new AI future.
Which is why Forbes says AI will be,
"… the most transformative technology humanity has ever developed."
And Google CEO Sundar Pichai agrees saying its impact will be even greater than fire or electricity on our development as a species…
And here's the thing…
Mining is no different to any other sector in the world when it comes to embracing AI.
And while the idea of mining and AI may seem new… It's actually been 10 years since Rio Tinto used fully autonomous haul trucks in what many are calling the "Fourth Industrial Revolution".
It's clear, the race is already on and any company that can get an advantage has the potential to become a household name.
Which brings me back to the little known ASX stock I see and a potential future AI powerhouse.
You see, unlike a lot of disruptive AI companies, they're not some "tomorrow technology" start up… they're already operating in this space, boasting mining heavy weights BHP, Rio Tinto, South32 and Fortescue as customers.
And as they develop their technology suite even further we think they have the potential to become a critical part of this new world mining infrastructure – well into the future.
In fact, it's possible those rare mining companies that don't use their ground-breaking technology may be left behind.
Investors who grasp the seismic opportunity between these two enormous sectors – mining and AI – right now… could be set to achieve some rare and spectacular gains in the years ahead.
Which is why the team at Motley Fool Extreme Opportunities have released exclusive research on this little known ASX stock in a buy alert simply titled – 3 Stocks for the AI Boom.
In it you'll get all their research on why they believe this company is such a screaming buy (along with two other AI stocks).
So, what makes this research so valuable?
As an independent financial research company, The Motley Fool has been running in Australia since 2011 (and in the US from 1993). We get to dig deep into smaller companies that the big investment houses simply can't afford to.
Meaning, we can spend time looking into the smaller but potentially bigger upside of the stock market.
That's why we're able to uncover great companies long before many of the big institutional investors and the financial news even catch on.
Please Note However: This information is so valuable it's only available to members of Extreme Opportunities.
But you can access it today.
Enter your email address below to find out how…
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.
