Topic: How To Invest

Hi Pat and staff. A good friend of mine told me that his broker advised him that “lithium is the fuel of the future” and to buy AmeriLithium. What do you think? Thank you in advance.

Article Excerpt

Lithium has sparked a lot of investor interest lately, mainly because it is used in batteries for electric cars. Demand is rising, but suppliers will likely find new sources of lithium to meet that demand. AmeriLithium, $0.74, symbol AMEL on the Nasdaq over-the-counter market (Shares outstanding: 58 million; Market cap: $42.9 million), has only acquired a few exploration properties so far, and has conducted very preliminary surveys. Early-stage exploration like this is highly speculative. Moreover, the company may also need to sell shares to raise capital, and its share price is quite low right now. Selling additional shares at low prices would dilute the interests of its current shareholders. We don’t recommend AmeriLithium. We haven’t found any lithium juniors worth investing in, but there is one stock that may be of interest to you if you are looking for a lithium producer. Sociedad Quimica y Minera, $33, symbol SQM on New York (Shares outstanding: 120.4 million; Market cap: $4.0 billion), produces lithium from…