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⏰ Set a reminder to join me LIVE @ 11am EST today as I review my top trading ideas for the week in the Market Master's trading room |
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Well, what do you know? |
After a big selloff on Thursday last week, the markets are rallying back and I would argue things are still looking bullish out there. |
If you like smaller stocks, then you have to love the fact that the small-cap index (IWM) just saw one of the biggest gains it has seen in a very long time. |
There is a lot of fresh money piling into small caps on that move, so make sure you are taking advantage of it! |
Over the weekend, I wrote to you about the enormous promise of lithium mining in Argentina… |
I noted that the global demand for lithium is expected to rocket fortyfold by 2040 (yes, 4000%!), and that fully 60% of the world's known lithium reserves are the "Lithium Triangle," which is encompassed by the borders of Chile, Bolivia, and Argentina… |
This is not a "winner takes all" type of game where one company will dominate. |
The market here is so massive, that I think there will be many smaller companies that create enormous amounts of shareholder wealth along the way. |
The problem is that most investors are only focused on US-listed companies. |
When you look at the landscape from a bigger perspective, you'll find that some of the best opportunities available today are stocks that trade in Canada or overseas. |
That is why I have been talking about the "Lithium Triangle" countries so much over the weekend. |
I think that region of the world presents one of the best investment opportunities anywhere in the world right now. |
Though Argentina is one of the world's four largest producers of the "white gold," it lags far behind its neighbor Chile. However, J.P. Morgan expects that to change, with Argentina overtaking Chile in lithium production by 2027. |
To date, only a few large players have come online in the Argentine lithium space, and they've managed to gobble up a lot of their smaller would-be competitors in very profitable mergers. |
Right now, I have my eye on a relative newcomer in this space — one that has yet to be acquired: Lithium South Development Corp (LISMF). |
Yes, I know. This is not your typical Nasdaq-listed company we might trade in and out of for minutes at a time. |
If you tune out right now after reading that, I think you're missing one of the bigger long-term opportunities out there. |
This is a very important company you should seriously look into. |
At the price LISMF is trading at right now, I think everyone should get this stock on their radar immediately. |
The company's main asset is its wholly owned Hombre Muerto North Lithium Project ("HMN Li Project") in Salta, Argentina — squarely within the "Lithium Triangle." |
The property package of 5,687 hectares (14,052 acres) contains nine mining concessions, six on the salt flat — known as a "salar" — and three off of it. |
The company couldn't ask for a better location… |
It's on the largest and longest-producing lithium salar in Argentina — the Hombre Muerto Salar — which already has a lot of necessary infrastructure. |
In fact, directly adjacent to the HMN Li Project is a $4 billion project in development by South Korean giant POSCO…. |
(I wonder if POSCO might be interested in expanding its claim?) |
This graphic from the LISMF corporate presentation shows just how close the HMN Li Project is to a POSCO lithium plant: |
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On April 30, LISMF released a pivotal Preliminary Economic Assessment (PEA) report, completed by "industry leading independent engineering consulting firms." |
LISMF said the report "provides support for Lithium South to proceed with development plans for a 15,600 tonnes per year lithium carbonate plant" at the HMN Li Project. |
Here are some critical details from the report's financial model: |
Net Present Value (NPV) after tax of US $938 million. This is the difference between the present value of cash inflows and outflows over a period of time. It's used to assess the profitability of an investment.
Internal Rate of Return (IRR) after tax of 31.6%. This is the discount rate at which the NPV of all cash flows from a particular project is zero. It represents the project's expected rate of return.
Payback of 2.5-years. This is the time it takes for an investment to generate enough cash flow to recover the initial investment cost.
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Taken together, these figures indicate the project will generate a substantial net gain, a strong return on investment, and a relatively quick time to recover initial investment cost — all after accounting for taxes. |
This report was a critical milestone for the company as it transitions from being a lithium explorer to a lithium developer. |
The company describes its next steps for 2024 as follows: |
Complete pumping well program at Alba Sabrina claim block. Confirm flow with long term pump tests Initiate well drilling at Viamonte/Norma Edith in POSCO cooperation zone Complete lithium process test work and permitting Complete Feasibility Study based on enhanced throughput
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LISMF notes that "At Feasibility, the company will represent an enhanced value project for development or acquisition." |
It also noted some highlights from the "hot M&A market": |
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Spend time right now doing your own research on the stock, and of course, always approach your trading in a responsible manner. Trading is very risky, and nothing is ever guaranteed, so never trade with more than you can afford to lose. Please read the full disclaimer at the bottom of this email as well so you are aware of additional risks and considerations. Always have a well-thought-out game plan that takes your personal risk tolerance into consideration. |
Bottom line: While LISMF isn't the typical type of "momentum" stock I usually talk about, I think this is a really compelling longer-term idea to look into. |
When you consider the enormous demand for lithium and the unique location of LISMF claims, it just makes a lot of sense to me right now. |
Make sure you pull up LISMF right now and look into it for yourself! |
To Your Success, |
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P.S. Make sure you join me and over 1000 traders in the Market Master's trading room today for live trading signals and education. You can access it at no cost right now. |
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© Copyright 2022, RagingBull |
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*Just so you know, what you're reading is curated content for which we have received a monetary fee (detailed below) to create and distribute. Let's be clear that investing can be quite the roller coaster as stock prices can have wild swings up and down, so consider those crucial risks before you ever consider trading anything we discuss. Make sure you check out our full disclosure down below for the details on how we were paid, the risks, and why these results aren't what you'd call "typical." |
Just a quick heads up about this ad you're reading—as we've said, even though we like the company referenced above, and all the facts we discussed above are true to the best of our knowledge, we are running a business here. To distribute this information and help offset the costs of maintaining our large digital audience, in advance of writing the content above, we received twenty thousand dollars (cash) from Market IQ Media for advertising Lithium South Development Corp for a one day marketing program on July 15, 2024. This amount was paid by someone else not connected to Lithium South Development Corp. It might be obvious, but whoever paid for this might own shares and is likely looking to sell some or all of them at any time after we send out this information, which might affect the stock price. We may also buy or sell shares in the company at some point in the future, although neither RagingBull nor its owners own any shares of the company at this time. Also, keep in mind that due to the sheer size of our audience, if even a small percentage of people decide they want to buy this stock, it could potentially boost interest enough to hike up those share prices and cause a temporary spike, and the opposite is possible as our program ends, though that is not always the case. |
Now, diving right into Lithium South Development Corp might sound exciting. But remember, it's like venturing into the wilderness—be aware that there's exceptional risk involved in trading. This isn't small potatoes we're talking about; you could lose every dime you put in, so always carefully think about what you're doing. That's why they call this trading, after all. We're shining a light on the good stuff about the company here, but it's on you to do your homework, make your own calls, and determine a plan for your own trading, hopefully with the help of your professional 1nvestment advis0r. |
Oh, that brings us to another crucial point—we're not here to tell you (or even recommend) what you should do with your hard-earned money. We're simply sharing our non-expert thoughts by highlighting some companies we like that could use some help telling their story to more people. We're obviously biased in our writing. We're not here to dig into anything that may be negative about the company; this is advertising, after all! Also, keep in mind that if we make some predictions about the future, these are technically known as "forward-L00king statements" under the securities acts, so take those with a grain of salt. As with all forecasts, they're not set in stone, often wrong, and we certainly can't know where the Company's earnings, business, or share price will be tomorrow or a year from now. |
Everything you read from us is all for your education, information, and possible entertainment. While we believe the info is reliable and accurate, we can't wear a cape and guarantee it. Before you jump into anything, make sure to talk it over with a pro—someone you trust who's licensed to give you real advice. To be clear, |
Neither Raging Bull nor its owners, employees, or independent contractors are registered as a secur1ties br0ker-dealer, br0ker, 1nvestment advis0r (IA), or IA rep's with the SEC, any state securities regulat0ry authority, or any self-regulat0ry organization. |
So, that's the scoop! If you're intrigued and want to learn more about the companies we talk about, hit up the SEC's website to dig into their filings and see the full picture. |
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