Wednesday, December 08, 2010

LIthium Drive: Shanzhai Electric Cars tnr.v , czx.v, rm.v, lmr.v,, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree,, nsany, f, gm,, dai, byddf, hev, aone, vlnc

  It is a remarkable story about DIY Electric Cars in China. We will not discuss obvious issues of safety here, but this trend shows the potential for the mass market for EVs in China. Electrification there goes from every angle: supported by state-level programs and by push from the local level by consumers themselves.

"This year we have a staggering number of reports and warning on the looming Peak Oil situation. It takes time for reality to settle in, particularly,when nobody knows what to do with it. We have put REE in the headline and only few months ago we would have to explain, what is it all about - now suddenly everybody is talking about REE and stocks involved in Rare Earths are all making new highs. It takes a crisis for us to realise that fundamentals are driving the real trends. Sudden realisation that China controls more than 90% of REE market and their reserves maybe will last only for another twenty years, created the catalyst in the market place. What will it take to realise that we are running out of cheap oil? Another crisis?
  We are talking here about the powerful mega trend Inflation multiplied by Peak Oil situation - we have to move and readjust our society. Our Energy diet is not sustainable any more. We are lucky in a sense that there is technology available to us to survive the Oil Shock if we will all move fast - Electric Cars. It is our Next Big Thing and at the heart of this disruptive technology lie strategic commodities:REE and Lithium."

  The sector is very small - now is the time to find and pick up value among the hype, backed by strong  shareholders and based on solid portfolio of Lithium and REE properties. Headlines from China, Jim Puplava and James Dines are moving REE into the mainstream in the investment space now and Lithium will get its recognition one day as well. Only few companies left without strategic investors in the sector, when even only this catalyst can bring the transformation to the junior from a holding company into actively pushing into production developer. It will bring multiples to the dormant valuation.

  We will provide some links for the further homework here:

  Top Picks from Lithium Bull: Rest Before The Charge have already enjoyed a very active M&A season, out of the two - Rodinia Lithium has already secured strategic investor and only International Lithium left for dating now. Among the strategic suitors are the same faces - people with money vs others with debt.

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