Q: DO YOU STILL CONSIDER THIS STOCK A LOTTERY TICKET? LITHIUM I BELIEVE HAS GAINED INTEREST. RECENT MOMENTUM LOOKS GOOD. WHAT IS YOUR OPINION?
5i Research Answer:
Market cap remains small at $48M, even with its 114% gain this year. We are not keen on recommending stocks that trade at seven cents. It has $9M debt, losses and negative cash flow. It did just raise $19M last week, however. The sector is hot, and we think it has potential, but risks are still very high here. There has been some insider buying which is encouraging. It looks a bit better than before, but still very much in the highly speculative camp.