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  5. NILI: I encouraged my young son to open a TFSA expecting incorrectly that he would consult with me before buying any stock. [Surge Battery Metals Inc.]
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Investment Q&A

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Q: I encouraged my young son to open a TFSA expecting incorrectly that he would consult with me before buying any stock. His first stock purchase was NILI based on something he read on the internet. Surprisingly, the stock has jumped recently; perhaps this company deserves more credit than my assessment. Your thoughts on this company please?
Asked by Brendon on May 24, 2023
5i Research Answer:

NILI is up 400% in a year, but market cap is still tiny at $40M. It has no analyst coverage, little cash, no revenue, losses and negative cash flow. Insiders own 2%. The stock has been much higher in the past. It has a Nevada lithium project but it is very early days here. The company is getting a lot of (paid) promotions, and is essentially just riding the lithium wave. It is going to need a lot more capital over time. Drill results do show high mineralization, but a lot more infill drilling is needed. It is not a mine yet!. While we do not have much 'against' it (we would like more insider ownership), it has gotten a bit too much attention for a tiny company. Promotion is not always bad but makes us cautious overall. We would consider it speculative with a capital 'S'.