Playing Electric Vehicles

Published on
February 1st, 2019
Topic
Equities, Energy Commodities
Duration
14 minutes
Asset class
Commodities

Playing Electric Vehicles

Trade Ideas ·
Featuring Larry McDonald

Published on: February 1st, 2019 • Duration: 14 minutes • Asset Class: Commodities • Topic: Equities, Energy Commodities

Larry McDonald, founder of The Bear Traps Report, returns to Real Vision to explain the coming investment opportunities around electric vehicles. He notes specific commodities that should benefit, highlights particular companies and recommends two different ways to capture the move, in this interview with Justine Underhill. Filmed on January 31, 2019.

Comments

  • DH
    Dale H.
    10 February 2019 @ 15:25
    This was limp and less grounded than something one could read in the mainstream press any day of the week。 How is uranium really a trading play on EVs in an reasonable timeframe?The Chinese are not building nukes to power EVs - they are trying to address much broader structural fuel mix and energy balance issues。 While uranium may be a good trade given things that have been discussed at length here before,it has almost nothing to do with the structural trends around EVs。Surely the interviewee could have dug deeper on some trade ideas that are actually real plays on what is happening in the industry and impacted sectors around EVs。 In the rush to produce content for the new RV,there needs to be rigor in the editorial process here and keep the bar high in what makes it trhough the filter。
  • MC
    Matthew C.
    10 February 2019 @ 01:33
    What a waste of 10 minutes. EVs seem to be a theme a broker told Larry about yesterday. Good luck on that position in “Boyd” - laughable
  • BH
    Ben H.
    4 February 2019 @ 15:18
    Good to see the whole EV theme getting a bit of love on RV.. would have been good if he went a bit deeper into the materials used in EV's rather than just lithium (however i realise there are time constraints)- he did mention south/latin america which is brines and there is also lithium from hardrock sources like in Western Australia- see PLS, GXY, etc. As to the whole oversupply of lithium i would argue that its not actually correct and be good to see the numbers as to actual supply that is not already spoken for in various offtake agreements? For those who are interested can also research the below materials that are used in EV's. Cobalt (approx 60% of world supply comes out of DRC) Nickel & Copper deff worth a look IMO. For uranium check out Energy Fuels UUUU on NYSE, Deep Yellow DYL listed on ASX plus there are a number of others.. RV should get Tony Seba on he discusses the whole EV & battery disruption that is taking place currently, I challenge anyone to watch it and then not get some exposure to this theme that is just getting started.. https://youtu.be/ox5LtxqQNHw
  • dc
    daniel c.
    3 February 2019 @ 02:31
    Long term contracting by utilities will most likely start once there is a resolution to uranium 232 petition. This will increase the valuation of uranium producers, then developers followed by explorers. Note... Producers of uranium are pulling the material out of the ground at an average of 50-60 dollars per pound and selling it into the market for $29... Prices must and will go up.. Or there will be no lights
    • AC
      Andrew C.
      3 February 2019 @ 11:47
      Spot price is $29. Long term contract prices from years back is not priced at spot. CCJ is buying on spot market and selling into their long term contracts. What company is selling to them?
  • MF
    Michael F.
    2 February 2019 @ 06:17
    Shows his true colors when he calls BYD "Boyd". He obviously knows nothing about the company other than its name, which is why he mixes it up with Boyd Gaming Corporation. I'm skeptical that this superficial top down approach to investing will work
  • JD
    John D.
    2 February 2019 @ 00:14
    ok interview until he showed his lack of knowledge and substance on lithium market. hasn't even understood the MS bear case. get on a real expert or better read person next next time.
  • JS
    Jon S.
    1 February 2019 @ 23:59
    When did Buffett take a stake in BYD? The interviewee makes it sound like Buffett just took a stake in the company. Buffett may have added recently, but his original stake is nearly a decade old. Facts would be more persuasive...just saying.
  • AV
    Adam V.
    1 February 2019 @ 23:48
    $LIT just completed a harmonic pattern down that started in November 2018 and completed in December. I turned bullish right after January 4 and got a confirmed bullish signal with a close above $28.
  • OC
    OTTO C.
    1 February 2019 @ 22:02
    I like the long-term potential for CCJ. However, it looks to me that it's still in a bear trend so I will revisit this idea in a few months for a better entry point
  • MF
    Michael F.
    1 February 2019 @ 19:40
    Cameco was introduced to me on RVTV by David Iben in late 2015, it was and is one of his largest holdings at Kopernik, The added benefit of that interview was that it was another of Grant Williams pieces introducing me to a "legend" I had not known about. Thanks RVTV.
    • AK
      Arthur K.
      3 February 2019 @ 14:57
      Thanks. Will check it out.
  • AK
    Arthur K.
    1 February 2019 @ 18:41
    For those interested in the uranium part, Adam Rodman recently spoke about the market.
  • CB
    Chris B.
    1 February 2019 @ 15:05
    Couple of points here. First, lithium prices didn't crash due to increased production from South America. In fact, production out of South America lagged forecasts last year mainly due to geopolitical issues in Chile. There was a slight increase in low grade lithium production in China which pushed the lithium spot price down by 50%. Contract prices for battery grade lithium outside of China (90% of the global market) are much higher currently than the inside China price though they will likely trend downwards in the coming quarters and years as the supply response from Australia and South America catches up with demand from EVs and ESS. Second, there is no current lithium production in Peru. One good angle here is to play the lithium converters if you have the stomach to invest in China. Good to see lithium get some press, though!
  • SG
    Sashi G.
    1 February 2019 @ 10:26
    I like Larry's analysis. Electric Vehicles are here to stay and grow. His analysis goes from First Order Effects (buying the manufacturers) to second order (buying the suppliers of components - like battery manufacturers; though not so much a focus of this interview) to third order effects (the supply of the charging infrastructure and power generation itself in a clean way to support both the demand as well as green emphasis). It is a long term mega-trend to play out; not for the short term.