2019 does not bode well for Stock Indexes and therefore, Index funds. Buying Index funds has been the go-to investment of individual investors (and some institutional investors) for years now. Since 2009, many have done very well with this simple strategy which has outdone many money managers over that time.
2019 may be different for a number of reasons! This bull market we have enjoyed since 2009, is getting very long in the tooth and 2019 is beginning to look like the end is in sight.
The macro picture is a mishmash of poor decisions and poor leadership from Central Banks and world leaders alike. The news is dominated by trade war talks, Walls, Brexit, German (read Euro) downturn, and Debt, beyond anything we have witnessed in the past. Real war cannot be dismissed either as the USA and North Korea are at a stalemate, and (nuclear armed) India and Pakistan are shooting down each others fighter jets, to the cheers of their domestic audiences.
With Britain on the verge of a "no deal" Brexit, Italy may be becoming a financial basket case, German output is inching into negative territory, and in France, the Macron government has done nothing to right that ship.
Some believe that, Deutsche Bank may well be the "Lehman Brothers" of the Euro zone this year as creditors close in and a bailout partner is not in sight. The two largest economies on the planet, USA and China are at serious odds over trade AND both are in serious DEBT! As the USA begins to withdraw from the world under this administration, it owes $22 Trillion dollars and that debt is now growing at 1.5 Trillion per year under Trump.
There are two ways to handle such a debt burden, 1: Default 2: reduce the dollar to a nickel. There is no other way to pay down such a massive debt! (my bet is that, if it were entirely up to Mr. Trump, he would pick door number 1) There are now more refugees on the move across the world than WW2 and most countries are putting up barriers to entry. Euro zone countries from Spain to Greece are doing whatever they can to keep out refugees, instead of welcoming them. Climate change, inept governments and wars are the reasons for such a migration.
Witness the debacle in the USA on the southern border as this president continues to threaten to shut down government if he does not get his wall. This argument is a hideous sidelight to what is truly going on in the world. This same administration seems to admire despots while scorning democracy, whether it is in it's own constitution or that of valuable allies.
The USA has now walked away from trade agreements, peace treaties and most recently, a nuclear arms agreement with Russia. None of these things bode well for markets, or indeed, humanity, going forward, but the pied Pipers of Wall Street keep on playing!
On a lesser, and personal financial note, while most index funds have very low fees, they are paid annually, and therefore, add up over time, eating into profits. As the value of your investments go up, so do your fees. This is a built in strategy that will eventually eat away at your gains. If these investments go down, the fund still gets paid, every year!
Conversely, Buying individual stocks is now usually done online for less than $10 per trade! (One time). When an index tumbles, not all stocks are included. Some stocks actually go up at such times.
The drawback:
Now you have to do homework! Stocks are not index funds! They require you to do some investigating of your own, unless, of course, you want to keep all your money in cash, gold and silver, and buried in your back yard!
History's Not on the Market's Side in a Trade War - Article at Bloomberg
The first shots of a global trade war were fired on
Friday as U.S. President Donald Trump announced a 25 percent levy on $50
billion of imports from China. The tariffs focus on “industrially
significant technology,” and intend to hurt China for alleged theft of
intellectual property rights. China responded
within hours with a detailed list of imports from the U.S. valued at
$50 billion that it would impose a similar 25 percent tax on...
Earlier this week, I contacted Talison Lithium to ask about any recent events that might move the stock price. I wanted to know if their were any price increases in the offing for their product, any new customers over and above the 300 current customers (mostly in China) which have sustained their operations at Greenbushes Australia and how they were developing their Salares 7 brine project in South America.
Here is the reply from Talison investor relations:
Talison continues to produce and sell lithium concentrate at its maximum capacity. For the 2011 financial year (results of which were announced about 2 weeks ago) production and sales volumes increased 30% and 32% respectively year over year, and Talison generated revenue of A$109 million and EBITDA of A$24 million, increases of 29% and 35% compared to the previous year.
Talison has continued strong demand for all its lithium concentrates from customers around the world. And until completion of the expansion of the Greenbushes Lithium Operations (expected in second calendar quarter 2012) the Company expects production and sales volumes to be capacity constrained. Construction of the expansion is continuing on schedule and remains on time and on budget.
In the current quarter, Talison has secured price increases for two shipments and believes this, together with recent price increases from other lithium producers, are reflective of a tightening in global lithium supply. The tightening in global supply is expected to enhance Talison’s sales prices in the 2012 calendar year.
Talison acquired the Salares 7 Project about a year ago, and the first drilling program was completed earlier in 2011 with highly encouraging results. Since then (during the winter in Chile) Talison has been planning the next stage of exploration which will commence in the next Chilean summer. Talison will invest approximately A$5 million in the programme including further drilling, process test work and collection of environmental data. Drilling will be focused on Salar de la Isla to define a potential lithium mineral resource estimate, as well as initial drilling at Salar de Aguilar and Salar Grande.
Responding to growing global demand for an additional secure supply of lithium carbonate, particularly from electric vehicle battery manufacturers, Talison is also aggressively pursuing its proposed plant to convert lithium minerals into lithium carbonate. Preliminary engineering studies for the proposed plant have commenced with a target of commissioning in financial year 2015.
The latest effort by Stratfor Gobal Intelligence details how the United States became an unintended global power, mostly through it's important geography as is laid out in this vlsual from Stratfors latest effort.
Over the space of a few hundred years, the United States of America became a global powerhouse of business and politics, with the most powerful military the world has ever seen.
Although I have made many comments over the past few years regarding the demise of the U.S. dollar due to it's massive debts, Keynsianmonetary policy and stalemated congress, I have also said many times that I never bet against the U.S. Yes, I have bet against the U.S. dollar, but not the U.S. economy. To bet against such a powerhouse country of pure business, is a fools game.
Will the world's power structures in 20 years look the same as they do today? Probably not. Emerging markets like China, India and Brazil are on the rise, and Russia is still a powerhouse in energy production. Germany will continue to power the Euro zone in one form or another, and second tier countries like Indonesia, Mexico, Canada, Australia and several eastern European countries are chugging along just fine.
However the USA is, and will be for the forseeable future, the first engine of global industry. This chart of per capita growth is a prime example of the power the USA has on global growth.
In your portfolio don't ever count out the good ole USA. As I said, that is a fools game. Count out individual companies, and maybe even certain sectors, but never count out this massive business powerhouse.
As I pointed out in a previous post, I do not work for Stratfor, nor do I benefit in any monetary way in suggesting they are one more valuable resource when considering macro events for your portfolio over time.
You can acess their latest efforts at Stratfor.com.
IN "China, Power and Perils" the latest report from Stratfor Global Intelligence, a case is laid out for unsustainable growth in the CommuCapitalist country.
Stratfor builds a case for the unsustainability of an 8% growth minumum, which China says it needs to placate the growing millions who have entered and are entering the job market at a staggering 16 million this year alone.
Stratfor says there are "structural elements that render 8% annual growth impossible" and compares the current Chinese economy to a giant ponzi scheme!
So, how are ponzi schemès maintained? Well, if Bernie Madoff and his ilk are an indication, it is done with lies, lies and more lies! The lies have to convince some smart people of their legimacy, after which those lies are then spread by otherwise legitimate people and businesses.It is only after the lies have been uncovered that the typical ponzi scheme begins to unravel. As I have pointed out in prior posts, if you cannot believe some of the economic reports coming out of some Wallstreet firms, then how can you count on the word of a cloistered, communist elite, that has absolutely no interest in your (or your moneys) wellbeing. Their only interest is how they will hold on to power in the coming years.
Stratfor brings up some familiar old ghosts, from our own recent past as they point out:
" China's economy (according to China) needs 8% annual growth, just to keep the roughly 16 million new people entering the work force from rising in jobless protest—and to keep up with climbing wages and to sustain a growing retired population. A combination of exports, loose lending practices, super low margins, and government spending help keep up the growth. Sound healthy to you? "
For several years now I have enjoyed reading the informative, and sometimes contraversal reports from Stratfor Global Intelligence. For the purposes of disclosure, I have no interest or investment, nor do I benefit from Stratfor, except for sometimes using their valuable intelligence.
This week, if you join Stratfor, at a cost of $129 for one year, they will send you this extensive report as well as the book, "The next 10 years" written by Stratfor founder, George Friedman.
If you do not wish to join at this time, you can sample some of their in depth reports for free simply by giving them your email address.
Stratfor is one more valuable resource, in the world of investing, politics and world events.
Image via WikipediaPeak oil! We've debated that term since the 1970's oil shocks. Back then some experts were predicting peak oil by the turn of the 21st century. Some said 2010, others as far out as 2030. However, according to the IEA, we passed the date for peak oil almost 5 years ago, in 2006. According to other distinguished scientists, who peer reviewed the IEA data, in Stockhold Sweden, even the IEA data is somewhat skewed toward the positive, indicating a dirth of oil is already upon us, and forshadowing prices that will make 2011 look like the good old days of cheap oil.
Review the video for yourself and make your own conclusions!
Then, invest accordingly.
Solid oil plays in the medium to long term.( We like SuncorSU and CenovusCVE)
Alternatives like wind, solar, nuclear, fuel cells (we like BallardBLD)
And lithium, (we like TalisonTLH, RodiniaRM and TNRGoldTNR) in the long term!
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.
Image by redgoober4life via FlickrCold weather is the bane of electric cars, or so I've heard from many naysayers (those that don't believe the EV is here to stay). You've heard the arguments! They range from range anxiety to cold weather performance to excessive recharge time etc. etc. These arguments are falling like dominos as the onslaught of electric car manufacturing spreads from California, to China, from Japan to Sweden. Now Volvo, known for making the safest cars in the world, has blasted the cold temperature argument of the naysayers.
Testing it's beautiful, brand new, all electric C30 in artic conditions, Volvo has already knocked down the biggest domino. After this everyone will know that electric cars will no longer be considered the domain of warmer climes. The Artic is a cruel teacher, as this writer can attest from his time spent in the north, but the students at Volvo have learned their lessons very well. 80 to 90 km distance in artic conditions, and that is just the first model.
Click here to watch this northern beauty in action!
Well, if the choice is between the Euro and gold, I say gold, hands down!! If the choice is between the U.S. dollar and gold, I still say gold. However, there is a growing chorus singing the praises of dirty old coal, as a solid, short term (6-12 month) investment for your retirefund, possibly, even better than gold.
For the past two months Ive been telling you about Rodnina Lithium and its premium properties in Clayton Valley Nevada and Salta, Argentina. Just like Salares Lithium before, we made Rodinia our conviction stock pick in this (the second leg of the lithium bull) market.
Rodinia has excellent properties and is one of the largest holdings in the lithium space which was (up until today) untouched by any big players. Now,Hong Kongs Shanshan Resources Co., one of the leading, lithium-ion battery material providers in China, has bought in.
All this, and on Friday, it was trading at a measley .17 per share.
Yes it is a penny stock. Yes it is a junior. Yes it is speculative.
However, at only .17 per share this stock has enormous potential.
Image by Beverly & Pack via FlickrAmericans everywhere continue to espouse the view that they live in "the greatest country on earth". This is so ingrained in the American psyche that the words are spoken as a matter of fact, without question. It makes me wonder how the rest of the world views Americans who continue to believe this in the face of a creeping, almost overwhelming sense, that the American century has officially ended.
Then in early July I told you about Salares Lithium and its Salares 7 project in the Atacama Desert of Chile, how vast their new holdings were, and how they might be a takeover target as this bull begins its second leg. It was my thought at the time that, because of an overstake of the Salares property by SQM (the largest brine producer in Chile) I believed that SQM might make some sort of offer for Salares.
However, within days of that article in which I made Salares my conviction stock pick, Talison Lithium, a private company from Australia, swooped in on Salares and a merger was announced combining the raw holdings of the Salares 7 project in Chile with the Two producing plants that Talison operates in Australia to mostly supply the burgeoning Chinese market with Lithium. Talison is the largest supplier of the commodity to China at this writing, supplying 66% of Chinese demand.
On Sept 17th, that merger should be completed and the stock of a new company (TalisonLithium Ltd is going public) will launch on the TSE. This will be the largest, pure lithium company in the world and thus the new lithium ETFs will have no choice but to place it near the top of their basket of stocks in the lithium sector.
Salares shareholders (as of the merger announcement) will benefit to the tune of approx 98.2% as their shares will increase from the .62 at time trading was stopped, to approx $1.25 when the new company begins trading on the TSE in Sept. (2.81 shares of Salares for each share of the new entity, striking price between $3.50 and $4 returns over 1.25 to Salares Share holders).
However, this writer will be holding on to his shares of the public version of Talison Lithium, as it will have to be listed in the new Global X ETF recently announced on the NYSE and Lithium indexes which are popping up on the radar screens this year. Lets face it, in any market, indexes and ETFs cannot afford to ignore the world leader, and in this case, it will be the worlds largest pure lithium play.
Talison operates two producing lithium plants at their Greenbushes operation in Australia. It has 25 years of production under its belt, supplies 300 companies with lithium and lithium carbonate, including many in China where it is the largest offshore supplier into that market. In its latest announcement of the merger with Salares, Talison management advise they are on track to ramp up production by 100% by 2011 and have many more potential customers knocking on the door at this writing.
That 100% increase does not even include the Salares 7 project in Chile which it acquires from Salares Lithium but it appears there are big plans for that area as well.
News: Hertz and Enterprise to rent Nissan leaf starting in January!
This is an update for those of you who took my advice and bought Salares Lithium in early July for around .60 cents per share. While their is a current hold on trading this stock (LIT-TSX-v) it is by no means a time to worry. It is a time to rejoice, because you have just doubled your money, at the very least. Here's why! About Salares Lithium Inc.
Salares Lithium Inc. is a lithium explorer in Chile that controls the 'Salares 7' lithium project made up of seven salars (brine lakes that are prospective for sub-surface lithium and potassium) and the surrounding concessions in Region III, Chile. Five of the seven salars are clustered within 155 kilometres and are 100% owned by Salares and its Chilean partner. About Talison Minerals Pty Ltd
Talison Minerals Pty Ltd is the leading global producer of lithium. Talison mines and processes the lithium bearing mineral spodumene at the Greenbushes Lithium Operations in Western Australia. Talison has an extensive, well established global customer network and a leading position in the growing Chinese market.(Talison produces over 65% of the current lithium being imported by China) Talison and Salares are merging into what will be the largest pure lithium producer on the planet, and the "only pure lithium production company" to be listed on the TSX (not the venture exchange). That will occur on Sept 17th.
I have spoken with Salares CEO Todd Hilditch and company consultant, Matt Johnston who assures me that the new company (he will provide the stock symbol in the next few days) will strike somewhere between $3.50 and $4 per share when it is launched on TSX in September. At that time, Salares share holders will own 1 share of the new entity for every 2.81 shares they hold of Salares Lithium (LIT)
With a price cap between $340M and $350M, this equates to approximately 35.6 % of the new entity will be owned by current Salares shareholders which should return approx $1.25 per share, or more to those of you who took my advice 3 weeks ago.
If the TSX-v allows trading in Salares over the next few weeks, I will not part with many of my own shares. (of course I will take profit on a portion - maybe 15-20%) as I see this as a strong, bullish move for our holdings.
The new company will be the only lithium producer listed on the TSX at a time when the electric car market is gaining momentum, and new lithium ETF's are popping up on the NYSE.
The Global X ETF will have no choice but to list the new company as the largest pure lithium supplier into China. If you invest you should do so "before" this occurs.
The combined company will have to be included in the new Lithium ETF's, as a front runner in the lithium space supplying the huge Chinese market and developing the huge Salares 7 project that Salares Lithium brings to the merger table.
When the new entity launches on Sept 17th on TSX, look for the strike price to pop. There is no way this stock will stay under $4 per share after it is launched. We think this new company will be a home run.
Your welcome folks, and here's to your retirefund.
HP
Rare Earth elements are more in demand now than at any time in history, and for good reason. China produces almost 95% of ALL rare earth elements used in industry today, and they recently declared that they would no longer ship these valuable commodities out of their country, preferring to use them in their own industries. This places China in the drivers seat in this space, as they literally attempt to corner the market for REE's. However, a number of western countries and companies are now earnestly in the hunt for these highly valued elements.
Whether or not you are an investor in these commodities, or merely interested in learning more about them for investment purposes, you should know that many of the everyday items you use, would not be possible without them. From your computer, your laptop, your cellphone, your catalytic converter in your car, compact discs, low energy light bulbs, your flat screen TV, and the X-ray you got last week, REE's play a vital role in everyday life.
Here is a composite of these elements and their uses.
Junior miners are a big part of the mix of companies looking to increase the west's share of these vital elements and for this article, we have chosen two that are still trading as penny stocks but have properties that show great potential in the mining of these elements as well as Lithium, which is not an REE but is in high demand world wide at this writing.
owners of TNR stock will automatically own stock and warrants in International Lithiumwhen it is spun out next month. (one share and one warrant for every 4 shares of TNR) Thereby owning "both" companies after the IPO next month. TNR will hold onto it's REE, gold and copper properties as well as one lithium property in Argentina while ILC will owns 17 lithium properties. TNR projects
Some large Institutional investors in TNR stock include:
Barrick Gold, Pinetree Capital, Tocqueville Fund, Solitario, and NovaGold.
Today's price for TNR-TSX is .20 cents per share.
June 2010- An assessment of TNR Gold Corp by Rick Mills of "Ahead of the Curve"
2. Latin American Minerals Inc. (LAT-TSX)Besides gold, silver, and REE, LAT owns a 17.4% stake in Lithium Americas Corp. (LAC) which has a big stake in the Salars on the Argentina side. LAT also owns rare earth properties (REE's).
Large, institutional Investors in Lithium Americas already include:
Oil circa 1909, plastics circa 1955 and Lithium in 2010. Lithium will store our power generated from wind and solar. It will power electric vehicles and improve hybrid plug-in vehicles. It is starting to power the mobile web (smart phones, iphones, ipads, note books and laptops). Every battery used for electric vehicles will require 8 pounds of lithium! We are now invested in six lithium mining stocks. Here are some of them, and the reasons why!
From Ford to Toyota, GM to Honda, and Nissan to BYD , from China to Chile and everywhere in between, auto companies are searching the globe and scrambling to secure their future supply of this commodity as the electric car is about to re-emerge after a 100 year hiatus.
Lithium is used in lithium-ion batteries, (and many new forms of Lithium batteries such as Lithium air, Lithium sulfur etc) glass ceramics, greases, steel, nuclear energy and pharmaceuticals, however, it is the advent of Lithium use as the best material for energy storage in batteries made for the Hybrid and electric vehicle market, that is causing one of the big bull markets of this decade. From Buses to cars and trucks, and every type of vehicle in between including vehicles such as fork lifts, ATV's, motorized bicycles (as in the billion or so made in China and India) skidoo's, seadoos, and everything else that moves, companies are building better electric batteries for these vehicles, and the overwhelming winner of the commodity race is, you guessed it, LITHIUM!!
Buying into a good Lithium play today would be like investing in oil at the turn of the 20th century, or plastics in the 1950's. It will have that much of an impact as the electric car and hybrid plug-ins become more and more common. The explosion in batteries using Lithium Ion technology, Lithium air technology, lithium sulfur or any number of other Lithium based materials currently being researched and produced is occurring so fast, that fortunes will be made, and indead, are already being made.
Scientists, technicians, engineers and lab rats all over the world, are developing lithium energy storage products at this writing. Lithium carbonate is the best element for storing electricity, period. When compared to current technology such as nickel metal hydride batteries, Lithium is twice as light, produces 3 times the power and keeps it's charge up to 5 times longer. Lithium won't just be used for electric vehicles, hybrids, cellphones and laptops including tablet computers, but also on a larger scale, for wind farms and solar farms where energy storage is absolutely crucial to the future of electrical grid technology.
China, recently announced it will stop shipping Lithium and rare earth enements (REE's) to other countries. China sees an opportunity to try and corner the Lithium market while America and Europe are still fending off financial problems and to this end, it has been trying to butter up the left wing government in Bolivia which may hold 50% of the Lithium deposits on the planet. Problem is, Bolivia is a quagmire of political problems for anyone trying to enter the Lithium market there as the president is not receptive to international companies. He wants to develop Bolivia's Lithium deposits "in country". another problem is that this Lithium deposit, while very large, will be expensive to develop because of the large amounts of magnesium and other compounds in the brine.
Other locations for Lithium mining are in hard rock formations(Canada-Quebec), clay formations (Nevada) and in Salars or salt Lakes. (Besides the big deposits in Bolivia, Chile (which currently supplies 60% of the worlds Lithium), as well as Argentina) It is the extraction of Lithium and Potash fromSalars that is the easiest, and cheapest way to mine this very "in-demand" resource.
Today, 60% of all Lithium is produced in the country of Chile!
Chile is really the epicenter of the Lithium boom notwithstanding Bolivia and Argentina, the two other countries that share the Puna Plateau.
The Salar flats of the Andes on the Puna Plateau, contain millions of tons of Lithium carbonate totaling 84% of the worlds known reserves.This Lithium is also the easiest, and cheapest Lithium to extract, as the sun does most of the work, in this, the driest area on the planet.
According to one of the foremost Lithium experts, R. Keith Evans, "Because Mother Nature does most of the work in producing lithium carbonate in this region, it is the greenest source of lithium we know of".
Any other source requires significantly more energy for processing, thus increasing the price." (read hard rock sources) Add to that the fact that Chile recently elected a conservative government that is very friendly to the mining community, and you have the making of a full blown, 5 alarm, bull rush into the Chilean Salar flats by a number of Juniors. Nevada also has similar, but smaller, lithium resources.
Canadian Juniors are leading the way in this boomand they offer the best investment "bang for your buck" so to speak, as investors wake up to the fact that Lithium will power the future of most automobiles. Currently, the top producer of Lithium from the Chilean "Puna Plateau" is Sociedad Quimica y Minera (SQM). To date, their Lithium production has been a by product of the potash which they mine there, and their stock price is already through the roof. In 2010 they are increasing their production of Lithium to meet increased demand worldwide.
Here are our picks in the Lithium junior miner sector, in order, based on the size of deposits identified, and the purity of the Lithium carbonate to be mined.
PURE LITHIUM PLAYS
1.Salares Lithium (LIT-TSX)owns over 117,000 hectares (288,990 acres approx) in the Atacama region of Chile, encompassing 7 Salars (brine lakes). It is one of the best, pure play Lithium ventures anywhere today with a depth of resource between 170 meters and 300 meters in a region that already produces 50% of the worlds current lithium supply. In fact, SQM, the largest producer of lithium in the world today, may actually be interested in some or all of Salares Lithiums concessions due to their close proximity and the purity of the resource.
Salares Lithium wholly owns 100% of 5 of those Salars, which is unique in the industry and very important in South American mining. Many others "share" deposits on the same properties. Salares now has a giant Lithium footprint, as large as anyone on the planet (read the article: Size matters ) They also have a very focused management team and institutional investors are in on this play.Now SQM may be interested. Analyst opinions on Salares Lithium!
2. Western Lithium (WLC-TSX)owns over 50,000 acres of proven, lithium reserves in Nevada. One of the only Lithium pure plays in the USA with proven reserves. This is one of the worlds largest, proven Lithium deposits at 47 million tons, mine ready, located in mining friendly Nevada with quick access to buyers in North America. Western Lithium should make any lithium investors portfolio. On May 31st Western Lithium will change it's name to Western Lithium USA to more reflect it's intention to supply Lithium to that market. (update- we recently sold our shares in WLC, at a profit of course, to free up cash for the purchase of more Salares Lithium shares)
LITHIUM,GOLD AND RARE EARTH METAL PLAYS
3. The biggest "sleeper" in the space is TNR Gold Corp (TNR-TSX) which is currently flying under the radar of most investors. TNR Owns 16 gold, copper, Lithium, and REE properties in Nevada, Canada, Argentina and Ireland. More importantly, TNR "owns 100% of International Lithium Corp" (ILC) which it will spin off next month in an IPO.
ILC own 9 Lithium brine properties in Argentina, Nevada and Canada, while TNR will retain it's gold, copper and rare earth deposits in Canada and Ireland as well as one Lithium play in Argentina. TNR may actually be the best "short term" play in the sector as it prepares the IPO for International Lithium Corp. as owners of TNR stock will automatically own stock and warrants in International Lithiumwhen it is spun out next month. (one share and one warrant for every 4 shares of TNR) Thereby owning "both" companies after the IPO next month. Institutional Holders of TNR stock include some serious players:
Barrick Gold, Pinetree Capital, Tocqueville Fund, Solitario, and NovaGold.
4. Latin American Minerals Inc. (LAT-TSX)Besides gold, copper and silver, LAT owns a 17.4% stake in Lithium Americas Corp. (LAC) which has a big stake in the Salars on the Argentina side. LAT also owns rare earth properties (REE's). Lithium Americas properties include over 100,000 Hectares encompassing 5 salars (salt lakes) on the Argentina side of the Puna Plateau.You can buy LAT now (currently .20 cents) to own 17.4% of Lithium Americas, (which we have done), or you can buy Lithium Americas (LAC) at the IPO price of $1.80 Strategic Investors in Lithium Americas already include:
Magna International Inc.
Mitsubishi Corporation
PineTree Capital corp.
5. Rodina Minerals (RM-TSX) Besides it's recent acquisitions of Diablillos, Centenario and Ratones in the Salars of Argentina on the Puna Plateau, RM owns a substantial lithium property in Clayton Valley Nevada Rodinia has 100% mineral rights to 50,440 acres in Nevada’s lithium-rich Clayton Valley in Esmeralda County and is currently in the process of assessing the size, quality and processing alternatives of its Lithium Brine Project. Early estimates put the valley’s lithium deposits as high as 700 million kg, ranking it second only in size to the deposits found in Chile.. RM is one of the top Lithium picks of Byron Capital Markets analyst, Dr. Jon Hykawy who is, arguably, one of the foremost Lithium experts in the market today! RM is also a favorite of the gold report.(theaureport.com)
At this writing, all of these stocks can be had for under $1 per share.
There is truly a "fire sale" on these market go-getters who have staked their claim in the Lithium rush of this decade and stand to reap huge rewards for their efforts.
You can invest in the battery companies, (who are battling it out in the technology department) the electric car companies, or the mobile web device makers like Apple, and they are indeed good bets. However, they all need the raw product, and that is Lithium, specifically it is lithium carbonate. The companies listed above with properties in Chile and Nevada, are in the drivers seat as these deposits are already known, are enormous, and will be processed at the lowest cost, because the sun provide most of the energy needed for production, in the driest, most arid places on earth.
The lithium boom will last for at least the next 10 years. As many investors make their fortunes from this 21st century boom, I hope that you are one of them. I certainly intend on being one. Here's to your retirefund!
