Standard Lithium Ltd.
Standard Lithium Ltd. (NYSE: SLI) is a lithium development and technology business located in Canada that is focused on developing a portfolio of lithium-brine-containing properties in the United States using Direct Lithium Extraction (DLE) and purification methods. The Company's project is in southern Arkansas, where it is evaluating the economic potential of lithium extraction from approximately 150,000 acres of licensed brine activities. Lanxess Project's south plant site in southern Arkansas has commissioned its industrial-scale direct lithium extraction demonstration plant.
Key Financials for Q3 FY22
Other Important Highlights to consider
Key Risk analysis
SLI stock as per fundamentals gives optimism going forward as per the share price. As can be seen from the chart below, SLI is currently below both short-term (50-day) SMA and long-term (200-day) SMA with an RSI of 49.14. After around 35 percent fall from highs of USD 9.25 set in April, the price is presently consolidating around the USD 5.40 to USD 6.30 range. The price has made higher lows and even RSI shows momentum generating in the price, hence SLI stock is expected to generate a good bullish push soon.
One Year Technical Chart, as of June 02, 2022. Data Source: REFINITIV, Analysis by Kalkine Group
Over the past six months, SLI's share price has corrected by 41.66%. The stock is currently leaning towards the lower end of its 52-week range of USD 2.97 to USD 12.92. As per technical analysis and the strong fundamentals of the company, the company is expected to generate bullish momentum soon with targets of around USD 7.50, giving an upside potential of 27.55%.
Considering the strong fundamentals, a strong outlook for lithium, a strong balance sheet with almost no debt, associated risks, and technical analysis for SLI stock, we give a "Speculative Buy" recommendation on the stock at the closing price of USD 5.88 as of June 02, 2022, with a double digit upside potential.
Technical Analysis Summary:
*Closing Price as of June 02, 2022.
Technical Indicators Defined: -
Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.
Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.
Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices.
Note 1: The reference data in this report has been partly sourced from REFINITIV.
Note 2: Investment decisions should be made depending on the investors’ appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the Valuation has been achieved and subject to the factors discussed above.
Note 3: The report publishing date is as per the Pacific Time Zone.