Lithium and AMLM

Recently, one of our featured companies, American Lithium Minerals [ticker symbol:AMLM] experienced volatile trading activity. Since July 17, the stock price has gone from $0.41 to a high on October 22 of $2.99, and just yesterday closed at $0.84.. Certainly after the initial run-up to $2.99 a certain retracing was to be expected. But just as the run-up was overextended I believe that this recent correction has been too severe and that the stock price now presents a tremendous buying opportunity. As can be seen on the chart, the stock price has been oversold to a level far below the lower Bollinger Band line at $1.00 and is now sitting near the $0.80 support level. I fully expect the stock price to rebound in short order to the $1.05 to $1.20 level and consolidate in a trading range for the short term between $1.00 and $1.60.

Lithium is in the very early stages of what may well be a long bull market run.

* Lithium-ion batteries already power 60% of the world’s cell phones and 90% of laptops.
* Lithium-ion batteries are already scheduled to go on line at GM. . .BMW. . .Toyota. . . Ford. . . Mercedes-Benz. . .and Nissan production plants.
* The automotive industry alone is predicted to require $1.6 billion worth of lithium by 2015.
* Non-polluting, lithium-ion batteries are winning the green-energy revolution because they’re smaller, lighter and produce twice the voltage of nickel-based batteries. And, they’re helping to break America’s addiction to foreign oil.
* Demand for lithium for battery use is forecast to grow at 20% a year for the foreseeable future.
* Lithium prices have nearly tripled in the last decade.