GLNCY - Li-Cycle Holdings: Not A Buy After The Recent Run-Up
2024-03-24 01:36:29 ET
Summary
- Glencore's $75 million in convertible bond financing, improved investor sentiment for LICY stock.
- However, I am concerned about the escalating project costs, management's execution track record, and the dilutive financing terms.
- I prefer remaining on the sidelines post the recent run-up in the stock price.
I last covered Li-Cycle ( LICY ) in 2022. I liked the company’s prospects at that time given its exposure to Lithium recycling, the favorable government incentives from the U.S. and European countries for the industry, the company’s differentiated technology which provided higher yield and lesser waste, and the backing from strong strategic partners like LG, Glencore ( OTCPK:GLCNF )( OTCPK:GLNCY ), Traxys, etc....
Li-Cycle Holdings: Not A Buy After The Recent Run-Up