Stillwater: Bet on palladium and platinum
"Stillwater Mining Company (NYSE:SWC) is not for the faint at heart," cautions growth stock expert Brandon Clay, noting the stock's volatility.
However, he adds, in Invest with an Edge, "If you can stomach the volatility this stock could be a big winner." Here, the advisor looks at the platinum and palladium mining company.
"Discovered in 1803, palladium would eventually be used in everything from tuberculosis treatments to multilayer ceramic capacitors; jewelers, photographers, artists, and every auto manufacturer later employed this versatile metal.
"Along with platinum, palladium is an essential component in the catalytic converters that transform most of the harmful greenhouse gasses emitted by automobiles into harmless carbon, nitrogen, and water.
"It would be impossible for catalytic converters to efficiently operate without palladium. As China continues to outpace the United States in auto manufacturing, palladium resources are tapped.
"Recently, China hit an all time high of 1.11 million sales, despite the global slowdown. This means sustained palladium demand.
"In addition to known uses, palladium has promise for the not-so-distant future. And once considered-junk science, new researchers are exploring cold fusion possibilities again -- made possible by palladium rods.
"Granted, this technology is years from market, but it shows how versatile palladium is - and how valuable it could become.
"Stillwater Mining Company has rights to the largest known palladium deposit in the US. The company mines palladium, platinum, and similar metals in the Stillwater Mine near Nye, Montana.
"They are the only significant palladium producer in the Western Hemisphere; their competition consists mainly of Russian and South African interests.
"With the renewed interest in precious metals, palladium looks poised to rise with similar metals. SWC should enjoy those benefits of appreciation.
"We emphasize that the stock is not for the faint at heart. However, if you can stomach the volatility this stock could be a big winner.
"Technically, it’s been in an uptrend since early March. SWC’s recent down move could be a great entry before it continues the uptrend. Look for Stillwater Mining Company to climb as palladium rises."
