PiedmontPiedmont Lithium Ltd. (NASDAQ: PLL) is a bargain stock that doesn’t have strong fundamentals behind it, but it does have the potential for explosive growth in the coming years.

Piedmont is a lithium mining company based in Australia. It is the whole owner of what is becoming the largest lithium project in North America. Based in the resource-rich Carolina Tin-Spodumene Belt, this project will sustain the company for 25 years with an output of 22,700 tons of lithium per year. Lithium price and demand is expected to increase as electric vehicles and solar energy installations become more common globally.

Piedmont operates at a loss and will continue to do so until it has fully developed its Carolina project. However, it has strong institutional backing, which should give confidence to new investors. Fidelity, one of the world’s largest asset management companies, recently purchased 74 million shares, becoming a major shareholder. Australian Super, the largest Australian pension fund, subscribed for 19 million shares. In total, 143 million shares were sold to institutional investors in July of this year, raising $21 million.

While shares in Piedmont are unlikely to produce returns in the short-term, the growth potential of both the company and the stock price make this a top pick for bargain minded alternative investors.

Key Data:

  • 1 Year Price Growth: -27.97%
  • YTD Price Growth: 63%
  • 3 Month Price Growth: -35.91%

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