RE: RE: Questions and answers highrider2" With the auto market crushed in Japan it could be quite some time before Lithium really comes into demand now."
thanks for posting that. finally see why the stock has been dropping for so long. simple misconception imo. way over the top media and junior lithium stock pundits overhype of the lithium industry based on electric cars imo, but understandable as pumpers like a dramatic story (not referring to TLH, but to lithium pundits at large)
lithium is imo incorrectly hyped solely as a benefactor of the electric car market. i see it as growing far more from the small device battery powered growth market, that will be fueled by hundreds of millions of new middle class members in the emerging world, who can now afford small devices powered by lithium based batteries.
cellphones, laptops, ipods, ipads, blackberries, flashlights, battery powered tools etc
electric cars will come, but adoption will be far slower than the small devices imo.
TLH will be supplying half the worlds lithium once the current expansion is complete, and their ore is super hi grade compared to the rest of the hard rock sources. also the brine based producers can only ramp up production slowly otherwise they ruin their brine pools with water ingress from the sides of their brine pools.
We've been selling off on low volume and low liquidity. despite this we see computerized trading by various brokerage houses. they don't turn the computer on to low volume stocks unless they want shares.
All the big houses are already trading the stock despite the liquidity. One of them is going to blink and buy a ton of shares imo. Till then it's a patience game.
Here's some of the brokers trading TLH: Bought deal at $6.50 and you can buy at two bucks lower. No brainer. Added a few more today.
Goldman
JP Morgan
Morgan Stanley
Merrill Lynch
Fidelity
UBS
Citigroup
Credit Suisse
HSBC
Cormark
MacQuarie
GMP
etc.. and
the Lithium ETF LIT
So imo, these guys need a US stock listing. They need a senior ex Chinese govt Lithium purchasing agent to negotiate supply contracts with the Chinese. They can give him and his family a nice home in Perth and in turn he can give them an education in negotiating "Chinese" style. It takes an education to negotiate with the Chinese. If you can't play their game they will eat you alive.
They also need to sell more product outside of China to be more attractive inside China. This is a poker game as much as anything imo, and they hold all the cards.
They have the fundamentals in their favor and need to gradutate to the vulture level.
Have been thinking of giving them a call and discussing some of this ever since seeing them advertising on SH. Not as if they fit the profile of the average SH user who buys penny exploration stocks with no DD, and based on hype alone
They just need some market context help imo. After all they are from down under and listed up here. Not easy to make the switch from appealing to the down under crowd to appealing to the canuck crowd. Two very different mindsets, and if stuck in Aussie mode with no Aussie listing, you kinda get a vacuum effect. Advertising on SH is proof of that imo.
Fortunately, they have a canuck share structure vs hundreds of millions or a few billion shares out like an Aussie stock.
Sure hope they don't list down under, but rather on the US market. Think MCP after their US ipo. Roughly $12US IPO price that topped out at $63US just over 5 months later, and MCP produces almost nothing.
So they have been focused on going public, two expansion projects and associated financing. I'll be looking for a well defined action plan, situational awareness and some focused aggression when I call them. If I don't hear it, I will insert it LOL.
not trying to be a smartass, it is pretty simple what they have to do. many miners lack market context smarts, while being great miners.