Sunrise Energy Metals Ltd SREMF

RE: Technical Analysis

[GenuineTalk]

Good post ReindeerBreath I like these kind of discussions where we all brainstorm some topic points with positivness and we can all learn new things which will point us to some mistakes we may be making and learn so we can proper.

The term "penny stock" what does that mean? if you look closely you will find that investor often have different perspective about "penny stock" definition. Some foe example will consider any stocks not trading on a main stream stock exchange as a penny stock i.e. any stock  OTCBB as penny stock. Even if the stock is trading at 10$ and it's trading at the OTCBB is still considered penny stock.

Other will look at the price of the share some will consider any stock trading under a dollars is penny stock other under 2$, and some will go further and consider 5$ as a seperating limit.

And usually penny stocks are higly speculative, with a high bid-ask spread, small market capitalization and limited following disclosure.

Now back to CLQ, is it a penny stock or not? Some will say yes and some will say no.

But lets look at the fact sheet:
1) CLQ is trading on TSX which is a major factor it's NOT on venture so this stock graduated and if it doesn't follow the TSX standard they will move it back to venture. You can bet on it.

2) CLQ doesn't have any debts, the feasibility study has already been made and proven that it's a sound commericial value with a proven Lithium reserve they have.

3) The volatility is actually not bad, the peak that happened lately and than the drop as people new there is major news coming out and the drop because the financing entailed what we call dilution. And I blogged before that this is a positive dilution since it's adding to the company value and not taking from it. I have seen stocks trading on NASDAQ and NYSE shooting up and collapsing like the roman empire on it's last day.

So calling CLQ a penny stock is very subjective, myself I categorize it as a micro-mini cap stock. The fact that it's trading on TSX empower the relevance of what I'm saying. More mini than micro. I agree they didn't start operation yet and there is no comparable as far as quarter performance put now it posseses al the elements that make this stock succesful in the future, the risks are very limited and bound to the market of lithium in general.