Q: For a long term hold I have small positions in each of these two companies and have some spare cash. Which one would you add to and why? Thanks!
5i Research Answer:
LAC is losing money and has negative cash flow. The stock has been hit hard. While we like it for the sector, its fortunes will be entirely dependent on the lithium sector and its development of its assets. Meanwhile, NEO is up 12% in the past year, pays a 5% dividend, has a good balance sheet with net cash and is profitable. 2025 is expected to show very strong growth in EPS. We think NEO wins this contest fairly easily.