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Monday, March 21, 2011

6 reasons why you should consider Rodinia Lithium for your value portfolio.

In November I discussed Rodinia Lithium and my belief that it is the next prize in the second leg of the lithium boom. Today I was re-checking the stats on this dynamic penny stock and something jumped out at me that I had not seen in some time. That is, in the insider trading reports supplied by TD Ameritrade, every single inside trade since June 2010 is a "buy"!  There are "NO" sell trades.

In other words, the people who actually know what is occuring in the company, on a day to day basis, and those overseeing the company's development, are all so poositive about their prospects, that they have only bought more of the stock, and not sold "any" of their holdings. This information alone, tells us something valuable is going on at Rodinia.


I know I am biased towards this small company, however, facts are facts.

1. Insiders are only buying this stock.

2. Rodinia owns three of the top 25 lithium properties in the world.


3. Shan Shan Corp. of China purchased their entire bought deal in Nov 2010, above the asking price, to ensure they are flush with cash to advance their properties.
(Shan Shan is one of the largest lithium battery suppliers in China)


4. Rodinias top three properties are all brine properties, with low development costs, in two of the best mining districts in the world, Clayton Valley Nevada and Salta Argentina. They are also listed in the top 25 lithium properties in the world today.


5. Byron Capital Markets Dr. Jon Hykaway, rates it a strong buy with a target of $2.25

(considered one of the foremost lithium investment experts today)

6.  On April 12, 2011 Ubika Research has issued a valuation report with a Price of $1.12 for Rodinia Lithium. (We think that is a very low assessment)

Rodinia was trading today at .44 cents.  RM.v  or in the U.S. as RDNAF.PK
It's market cap today is listed at $28.8M with 65.5M shares outstanding.

With $10 Million in cash on hand for development, this values the company at only $18.8 million.
That is a ridiculously low valuation for Rodinia's lithium properties

I have been a buyer this month, for these reasons.

Maybe you should consider adding Rodinia Lithium  your value portfolio.

Wishing you great success with your Retirefund.

HP

Rodinia - Clayton Valley Nevada

Related Articles:
The resource of the 21st century
Rodinia looks like the next prize

Rodinia CEO interview - Audio

Highgrade interviews Rodinia CEO 






Links:

The Grandich Letter - Rodinia Lithium
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2 comments:

David said...

How does the recent reports out of Japan and its effect on their battery making/electronics industry affect firms like Talison and their demand from their customers? Can we expect a temporary slowdown?

H. Pelham said...

Most of Talisons spodomen lithium production is sold into the "Chinese" market and not into Japan. Their brine properties in Chile will eventually sell into the North American market. I don't see the problems in Japan being an issue for Talison.