Can I please have your opinion and whether you would recommend a small position.
Thanks Rick
NILI is riding the EV battery boom (frenzy?) and is up 197% this year. Market cap is now $158M. Insiders own 4%. It has no revenue, profits or cash flow yet, but has about $10M cash. American Lithium LI has made an investment into NILI, and its Nevada lithium project is attracting lots of attention, due to its grades and expanding size. This needs to be considered very high risk, but there are some good qualities here for speculators in the sector. It is still early days, and a lot of capital still needs to be spent on the project. We would consider a position only as 'part' of a basket of speculative names. EXRO is much larger, but also has minimal revenue. But revenue is expected to ramp up next year to $90M+. Cash flow remains negative (-$31M) in last 12 months. It battery technology claims superior charging, better depth of charge, enhanced safety and cell longevity. It does have orders from car manufactuers to back up these claims, but we need to see if things still work in 'scale'. Its balance sheet is not that great, insiders own 3%, and we would expect it to raise more capital. But its tech is interesting for sure. That being said, with essentially no revenue and market cap near $400M, expectations are pretty high here already, and that would make us a bit more cautious on buying.