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execs say stock gains might be ahead of themselves

July 21st, 2010 · No Comments · General News

pTop execs who say their sharesrsquo; gains might be forwards of themselves get a gold, or in this case, a lithium star, in my book./p
pFollow @a title=Tweet Lithium Now href=http://twitter.com/TweetLithiumNow target=_blankTweetLithiumNow/a On Twitter!!!/p
pThus is the case withnbsp;lt;tonicgt;Kerry J. Knoll, the veteran mining executive who recently took over the captainrsquo;s seat atnbsp;strongCanada a title=Lithium href=http://www.lithium-stocks.net target=_blankLithium/a/strongnbsp;(TSX: V.CLQ,nbsp;Stock Forum). nbsp;The tiny developer of thenbsp;strongQuebec Lithium Project/strongnbsp;sealed a pact with Japanrsquo;s Mitsui amp; Co. for laboratory tested lithium concentrates for batteries and other industrial uses./p
pCanada Lithiumrsquo;s shares, at a two-bagger 40 cents Canadian, are outpacing gains of most, if not all, lithium carbonate hopefuls that trade publicly./p
pldquo;There is some stuff red on (at the keep company),rdquo; Mr. Knoll tells me from Toronto, ldquo;but I donrsquo;t look at it warrants the march in the stock. It seems that lithium is at the top of the queue right now for speculators.rdquo;/p
pThe trading action in scores of small miners, wanna-be manufacturing businesss of lithium, moly, gold/silver or rare fixingss atomic number 73 and niobium, is animated this summer. One can catalogue a hundred significant gainers onnbsp;Stockstreamnbsp;ndash; flashingnbsp;green, evolving 30% and 40% higher each day./p
pMatters not where these exploration companies are staking their 1-in 10,000-claim to mining realness: Wyoming, Nevada, Ghana, Colombia, Mongolia, Mexico, Indonesia. They are all swelling on volumes 30% to 300% greater than their 30-day averages./p
pnbsp;/p
pI asked Mr. Knoll: Why the doubling ofnbsp;a title=Lithium Stock Price href=http://www.lithium-stocks.net/?p=240 target=_blankstocknbsp;price/anbsp;in in brief order on little news? This just after a hullabaloo about Canada Lithium boardrsquo;s terminating of now former CEOnbsp;strongJudy Baker/strong? Whom does he respect among the multiplying lithium ranks? (emLithium One (CNY) was the answer. He owns shares of the James Bay Lithium Project owner./em) Whatrsquo;s next for tiny Canada Lithium and its impeccable Japan connection? How long to production at Quebec?/p
pThe 50-something executive has engineered more than a few success stories at gold and lithium miners. He knows his molybdenum political economy, and Kerry Knoll also was a diary keeper at Northern Miner mag and Canadian Mining Journal. (emSee previous article./em)/p
pMr. Knoll says he never has worked with a junior that did not eventually become a producer. ldquo;The odds of finding them are 1 in 10,000,rdquo; he says./p
pHis associated companies spanning three decades includenbsp;strongGlencairn Gold Corp/strong., which is nownbsp;strongB2GOLD Corp/strong. (TSX: T.BTO,nbsp;Stock Forum); Wheaton River Minerals Ltd., which is nownbsp;strongGoldcorp/strongnbsp;(TSX: T.G,nbsp;Stock Forum);nbsp;strongBlue flatten Mining Ltd./strong, which acquired Thompson Creek Metals; Thompson Creek Metals; and gold Goose imagerys./p
pPossible events that are triggering Canada Lithiumrsquo;s moves higher, Kerry says, includes an at hand(p) designation of new board members, a timeline to production of 1 meg tonnes of lithium-laden ore by 2012 and the granting of more than $2 billion of USA government money to researchnbsp;lithium ion technologiesnbsp;for powering vehicles./p
pldquo;People also may be coming aware that inside lithium deposits you have spodumene, which is used in glass and ceramics,rdquo; he says. Spodumene is also known as lithium aluminum silicate./p
pI will add to Kerryrsquo;s list: articles naming the company and rare element wanna-bes as stock picks: likenbsp;this onenbsp;from the other day. (Some of these companies, such asnbsp;strongTNR/strongnbsp;(TSX: V.TNR,nbsp;Stock Forum) andnbsp;strongCommerce Resources/strongnbsp;(TSX: V.CCE,nbsp;Stock Forum), are actively pursuing their respective rare element fields with veteran verve and not a little clench. Still, this in Mr. Knollrsquo;s view, and my own, does not guarantee they ever will see light-of-production day.)/p
pAbove all, Canada Lithium has the reward of communion its lithium carbonate concentrate samples from Quebec with a manufacturer, Mitsui, that is willing ldquo;to give us its own customersrsquo; specifications for what they need from the elementrsquo;s properties,rdquo; Mr. Knoll points out./p
pPlain speaking equipment casualty: All lithium carbonates are not created equal among ever-evolving technologies for electric-powered vehicles and rechargeable devices./p
pnbsp;/p
pWhere does this leave you and me? With the reality of mining. Going from newspaper publisher to rock takes 5 to 8 years, almost anywhere in the world with the possible exceptions of Wyoming, Mexico and Russia. That is, unless you are Red Lakernbsp;strongRob McEwen/strong, in which case you can divide that number in half an make friends with all of the townrsquo;s folk, and your workers to boot hellip; or you arenbsp;strongRobert M. Friedland/strong, in which case you can multiply that number by 1.5 or even two, frighten half the universe of a hungry state of matter with your bold underground purposes yet still raise money from London and Dubai and Geneva participants, andnbsp;emstill/emnbsp;manage to subdue the jobless rate in a 50-square-kilometer patch of the mining district by 40 percent or more./p
pldquo;There are 50 moly companies in Canada exclusively,rdquo; says Mr. Knoll, who uses molybdenum as an example. ldquo;Yet how many of us know that moly prices almost always trail with the price of oil? Or that rare elements are peculiar marts with peculiar characteristics?rdquo;/p
pKerry Knoll continues, ldquo;There is plenty of lithium in the earthrsquo;s crust, but who is really getting it? In the next four years, wersquo;ll see a shortage of lithium concentrate coming out of the ground,rdquo; says Kerry Knoll, who adds that investors can make one strong assumption ndash; ldquo;Before this is over, there will be hundreds of companies staking claims to the lithium market.rdquo;/p
pAt the Quebec Lithium Project his company owns. Kerry Knollrsquo;s small team (no public relations or Investment Relations section, he notes) has signed on several contractors who will survey ldquo;the old drill holes from the 1960s and twin some of the holes.rdquo;/p
pHe sees a ldquo;full-blownrdquo; resource estimate of the property sometime in first-quarter 2010. nbsp;Then come the feasibility studies for a working mine, the pilot plant, collaboration with workers and community groups at the nearby town of Val Drsquo;Or. Of row, along the way are requests for cash in exchange for stock./p
pCanada Lithiumrsquo;s last fund-raising was in June for $4 million. Wersquo;ll keep following the story./p
pstrongSentiment:/strongnbsp;Seenbsp;strongBernie Schaeffer/strongrsquo;s second issue of Sentiment magazine, just out. My article on gold sentiment is onnbsp;Page Zero./p
pstrongPhoto:/strongnbsp;I took the above photo, and many more, at a mine tour last week on behalf ofnbsp;strongemTicker Trax/em/strong. Name the mine or the company in the next 60 minutes following publication of this article and I will send you a copy of the next issue./p
pstrongActive Trading:/strongnbsp;David Banisterrsquo;s Active Trading Partners is now live atwww.activetradingpartners.com. We at Stockhousersquo;snbsp;strongemTicker Trax/em/strongnbsp;are discussing collaborating with the New Englanderrsquo;s clamant measure help?./p
pDavid A. Banister, as you recall, analyzes price and pattern waves, sentiment, products and people. His track record is verifiably just short of excellent for May, June and July. I have known and followed the analyst since about 2002./p
pAs a real-time test, asunder from the 50 selections he examined and selected in a beta-test of his service, I personally went long on one of Mr. Banisterrsquo;s choices:strongMedarex/strongnbsp;(NASDAQ: MEDX,nbsp;Stock Forum) at approximately $8.15 a share. (emPlease see previous article./em)/p
pstrongBristol-Myers Squibb/strongnbsp;(NYSE: BMY,nbsp;Stock Forum) announced its intention to purchase Medarex, a developer of auto-immune technologies and biologic drugs, some 36 hours later for $16 a share, some $2.15 billion. Mr./p
pMr. Banister explains that Medarexrsquo;s shares had largely been abandoned in the marketplace. David, who is especially adept at choosing undervalued pharmaceuticals and natural resources companies, also notes that large companies are well aware that half of all top selling drugs in coming years will be so-called biologics, fashioned from aliveness organisms, compared with less than a third of them at put in. The typical premium in a cash or stock function for a biologics company last year was about 80%./p
pnbsp;/p
pnbsp;/p
pstrongNew Orleans/strongstrong:nbsp;/strongWhen October rolls around,strongnbsp;/strongmy calendar slots instrongnbsp;/strongNew Orleans as one of North Americarsquo;s most diversified investment conferences.nbsp;The New Orleans Investment Conferencenbsp;in previous years has given me great satisfaction meeting colleagues, subscribers and real miners, scientists and alternative economists/technicians. Andnbsp;makingnbsp;money./p
pIrsquo;ll be presenting a down-and-dirty workshop at this yearrsquo;s gathering; I hope some of you can join me.nbsp;strongBrien Lundin/strongnbsp;of The Gold Newsletter producesnbsp;the conference, whichstrongnbsp;/strongrunsstrongnbsp;Oct. 8-11.nbsp;/strongMany of my trusted colleagues and investment sources attend the show. This year will pay back an excellent crop of counter-clockwise and contrary thinkers in the areas of mining,nbsp;emergingmarkets, commodities and life sciences./p
pThe custom of the New Orleans conference goes back to the mid-1970s, when gold was just catching wind at its back from ordinary investors, people in garage lofts who had little idea they couldnbsp;buynbsp;goldnbsp;and silver./p
pJust as good are the select companies that decide to gamble out Brien Lundinrsquo;s show with their executives. Several xii companies in all, nearly all natural resources and about half of them worth reviewing./p

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