1. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 9
Average Analyst Price Target Upside: 101.4%
Lithium Americas Corp. (NYSE:LAC) is a Canada-based company that explores and develops lithium properties in the U.S. and Canada. In the fourth quarter of 2023, 9 hedge funds held positions in Lithium Americas Corp. (NYSE:LAC) and their stakes amounted to $15.143 million.
Lithium Americas Corp. (NYSE:LAC) takes the top spot on our list of stocks that will 10x in 5 years according to analysts. As of May 10, 13 Wall Street analysts have covered the stock, and 9 keep a Buy-equivalent rating on the stock. The average price target of $8.78 represents an upside of 101.4% from the present levels.
Massif Capital stated the following regarding Lithium Americas Corp. (NYSE:LAC) in its fourth quarter 2023 investor letter:
“Currently, we remain, at a small size, invested in two lithium mining firms, Lithium Argentina (LAAC) and Lithium Americas Corp. (NYSE:LAC). Both companies were part of a single entity (Lithium America Original) as recently as October. That entity was a long-time Massif Capital Investment initiated in March 2020 at roughly $2.5 per share. At the time, the firm was in pre-production at two assets, an Argentina-based lithium brine deposit and a US-based clay deposit, to which we attributed little value because of the state of processing technology.
We used the stock’s volatility to great advantage throughout 2020, 2021, and 2022 as we repeatedly sold both puts and calls on the company, reducing our entry cost below zero via premium earned on those options trading activities. In 2021, the stock peaked at roughly $39 a share, a roughly 1,460% gain on our purchase price. Given the state of the firm’s assets, we should have cut the entire position instead of just trimming. We had confidence in the management team, and momentum and enthusiasm for all things EV and battery were strong, offering the potential for the market to run the price well past any reasonable value. Furthermore, at the time, the lithium prices we were seeing implied a fair value of the two development assets well north of $40 a share, and we were having trouble understanding how long the trend of sky-high prices would last….” (Click here to read the full text)
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