Thursday, August 20, 2009

Investing in Lithium Bull - second stage alert. TNR.v, CZX.v, WLC.v, CLQ.v, RM.v, AVL.to, RES.v, LAT.v, LI.v FXI, SQM, ROC, FMC, GOOG, AAPL, RIMM

"Bull market mentality is well documented and taking its charge in stages:
First stage is when everybody oppose it or do not know about it. Just few will make fortunes being brave, bright and crazy. You need to have your right winning mix here. Crazy - because you never know for sure.
Second stage is when idea has received industry recognition. Industry insiders, their brokers, funds and managers are busy taking stakes before telling to their clients to Buy.
Third stage is when taxi driver is telling you that he is in this Hot New Thing, when your neighbour will give you a latest tip about it and your investment bank will scream Buy.
All these phases are separated by years of ups and downs with Mr Market playful nature. You will be able to recognise Third stage as well - it is when you are sure that the things could not get any wrong and you must be a real genius staying on the top. At first signs of this clinical condition start to sell gradually - this Bull will be close to its bust."



CS. We have been there we have seen this before: in Gold, in Uranium, in Moly. Nothing is wrong with a letter writer sales pitch below: for us it is an important sign that Lithium and REE market is ready to take off. Until now almost everything with Lithium on the web page was making you money and it will continue for a while, but it is time to make your homework right: we will have a roller coaster ride and you need to know what to hold, what to add on the dips and what do not even touch. If you never even called the company you are investing in, do not bother with the whole exercise - you will be burned. Hungry brokers and investors after market collapse will rush into hot very narrow money base Lithium and REE sector with micro caps and the ride could be explosive.

"Quality of projects, strong technical team and honest management with access to capital and clear focus on aggressive building of shareholders' value with first entry advantage will define the future winners."


"Now in our investment play on Green mobility we have few uncertainties less: Electric cars are all over TV and newspapers and Lithium companies are rising all together as boats with a tide. Time is to choose the companies with strong management, solid projects and industrial backing. Go for what Majors want. In Junior sector it will be M&A game after all - who will be a consolidator and be ready to pay the money to buy time."





These 6 Lithium Stocks Are Up an Average of 1,578%
By Brian HicksWednesday, August 19th, 2009
If you haven't noticed, there is a group of six stocks that's been on fire this year.
The best performer is up 3,233% since its December 2008 lows. Yes, you read that correctly. . . +3,233%.
Another one is up 990% in that same time. Three other stocks — all microcaps — are up 1,100%, 2,125%, and 1,999%.
The worse performer of the bunch, a large cap, is up just 21% since December.
The six stocks have just one thing in common: all produce or mine lithium.
Lithium is being touted as the next primary fuel of the 21st century. Hybrid technology and electric cars are thought to be a viable alternative. I have no idea how long it will take to fully transform the U.S. economy from a fossil-based energy complex to a renewable one, but I do know this. . . sentiment is clearly in favor of green energy.
Solar energy, wind, clean fuels, ethanol, run of river projects, and geothermal energy continue to be the hot topic in the energy sector. So if the world moves forward to battery-driven vehicles, lithium will be a high-in-demand commodity, as it is used in electric and hybrid electric car batteries.
The chart above (S.) shows the estimated future lithium consumption.

Warren Buffett Has Increased His Stake
Some of the world's top investors are swooning over one company. Warren Buffett... T.Rowe Price... even the Obama Administration.
They've all increased their stakes. And you can get in just like they did!
Click here to learn what they're so excited about and how you can profit from it.
According to a report recently published by Research and Markets entitled "Lithium-Ion and Nickel-Metal Hydride Batteries, Lithium, Rare Earth Lanthanum and the Future of Hybrid Electric Vehicles 2009-2020":
The auto industry is about to enter a new era: the electrification of cars. The move to electrified cars will have dramatic, disruptive consequences to consumers, auto makers, input suppliers, battery producers, regulators, mining companies, oil producers, electric utilities, R&D activities and investors, among others. However, from this change will come enormous opportunities, including the reduction in CO2 and global warming, less dependence on oil, more geopolitical independence, technological advancements, very large, new industries and markets, and huge profits.
The economic, regulatory and technological advantages of hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) means that dramatic growth in their adoption and usage will be seen over the next 11 years to 2020, both in the US and worldwide.
Batteries are the key technology enablers for the future of HEVs, PHEVs and EVs. Nickel-metal hydride (NiMH) batteries currently dominate the HEV market, but they soon will be replaced by lithium-ion ones.*
*Editor's emphasis During the uranium bull market between 2001 and 2007, more than 600 uranium companies either went public or switched their resource business to become a uranium play.
Six hundred companies!
And less than 10 actually mined proven uranium.
Yes, it was mania.
Even though the lithium stocks are up big in the past year, the supply of stock available to investors is severely small.
We could be witnessing the phenomenon of "too many dollars chasing too few stocks."
The lithium bull market is in its infancy. If it's similar to the uranium bull market, we could witness several years of a lithium rally.
In the coming weeks, I will be recommending lithium stocks to you.
Profitably yours,

Brian"

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