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I'm an avid trader and stock market analyst. I'm always on the hunt for a great day trade or swing trade and of course look for the next stock to hit a home run and make it from the OTC to the big boards. Fundamentally, I'm a trader and my decisions are day to day 60% of the time. I look over... More
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  • How Could The Auto Industry Drive Lithium Companies To New Heights? 0 comments
    May 8, 2013 10:29 AM | about stocks: SRBL, ROC, AAPL, F, HMC, NSANY

    I feel confident in the massive upside potential with this latest industry boom. I think it's as almost if there has been a rebirth for the mining sector all together and now these "rocks" have some sex appeal with the latest break in the technology market centered around lithium!

    Did you know -Toyota is buying up vast lithium resources to meet future demands following record sales of its battery-powered Prius? (Worldwide, Toyota sold more than 200,000 lithium-powered Priuses in 2012)-Or what about Sanyo Electric teaming up in a joint venture to provide Volkswagen with its own lithium-ion batteries?

    The big companies in the technology and green energy sectors have already found an importance within this market and are rapidly looking to capitalize. This is why I continue to look for emerging companies in this vastly growing space!

    Tonight I would like to introduce you to:

    OTCQB: SRBL

    SRBL is a mineral exploration and development company focused on supporting America's growing clean energy and clean tech industries. Based in Denver, Colorado, Great American Energy is dedicated to responsibly identifying, acquiring and developing mineral assets in America and US-friendly countries. The Company's portfolio of projects currently targets lithium and rare earth element production, both of which are essential to America's clean energy and clean tech industries.

    Today, SRBL Announced its 2013 Exploration Program for the Nevada-based Big Smoky Valley Lithium Project. The exploration program is set to commence on the BSV property in June 2013 which the surrounding lithium-bearing rhyolites are among the richest in the world according to US Geological Survey (USGS) information. This Project is also adjacent to America's only producing lithium mine, Chemetall Foote's Silver Peak Mine in Clayton Valley which has been producing for 40+ years at a rate of roughly 5,000 lithium carbonate equivalent tonnes per year!

    ...And just incase you didn't know: The Chemetall Foote Silver Peak Mine is owned by Chemetall Foote, a subsidiary of Rockwood Holdings, Inc. (NYSE:ROC) which has a current market cap $5.15 billion!

    But that's not the only event from Today that I think may be sparking interest in the market for this Lithium play. After today's close, I feel that the SRBL chart looks like it could be boiling with breakout potential:

    The ABC's of SRBL Chart

    A. RSI has turned aggressively Bullish which in my opinion is a signal that the strength of the current chart pattern is growing!

    B. April 22 (15 Days ago) SRBL was trading over the $1 Mark, noting the potential to see higher levels.

    C. I feel that SRBL may have found its support after recently hitting its 3-Month low with the candle-stick trend currently signaling a possible bounce formation. This could also pose a strong tendency for a breakout run as historically, this range has seen bounces move more than 50%! (Ref Mid March)

    D. MACD, though consolidated, has started to turn north toward crossing the signal line- Another Bullish Indicator

    E. I think Accum/Dist may still suggest that moderate accumulation could be in play while maintaining a steady upward trend!

    (click to enlarge)

    More on SRBL

    SRBL, of course, is my latest pick but I have to say that some of the biggest names in the business are taking notice as well, including Don McShane, who has written more than 700 issues of his in-depth reports and has a track record of winning picks all his own. In his issue of The McShane report, Don expresses that "SRBL is one of the most exciting opportunities he's ever uncovered."

    With that said, I think many would agree that the Lithium industry has been growing massively over the past several years and it's not just powering cell-phones or Concept "green machines" anymore. Lithium has now taken a place in business where companies have dedicated a huge amount of money toward building an entire brand around green energy and renewable resources!

    (click to enlarge)

    Apple, Inc., Pfizer, Panasonic, Sanyo, as well as most, if not all, major auto manufacturers have zeroed in on Lithium and other Rare Earth Elements. According to a recent article in The Motor Report (Click Here), Nissan has revealed plans to launch 15 new hybrid models within the next four years!...

    I don't think this trend may be ending any time soon and feel that SRBL is ready to make a strong move to secure its position in this space.

    Besides the Big Smoky Valley Project mentioned earlier, SRBL has also identified an option to secure 60% interest in 10 mining claims in the British Columbia, Canada based Bear Creek Rare Earth Elements (NYSEMKT:REE) Project. In total, these claims consist of more than 7,000 acres with a potential tonnage of 1 Billion, seeded right in the Rock Mountain Rare Metal Belt!

    As of April 26, 2013 SRBL has completed the geophysical grid layout and soil sampling in Phase I of the Company's exploration program on the Bear Creek Rare Earth Project (Click Here). Once Phase II is underway, SRBL will look to begin trenching and finally will look to implement diamond drilling in Phase III of the project, according to the Company.

    How Bout Government Legislation?

    (click to enlarge)

    President Obama has set as a realistic target having one million American-made hybrid cars on America's roads by 2015 and Congress approved the $25 billion Advanced Technology Vehicle Manufacturing Program to make sure it happens.

    To speed the switch to lithium battery powered electric vehicles, President Obama signed a $787 billion economic stimulus plan that includes $5 billion for the development of a domestic battery industry including:

    • $2 billion in loans, grants and tax credits to help stimulate the development and large-scale domestic production of advanced, lithium-ion batteries for hybrid and electric cars.
    • Up to $2.4 billion in tax credits for building battery plants.
    • A $2,500-$7,500 tax credit for people who purchase plug-in hybrid cars depending on the size of the car's battery pack

    Disclosure: I am long AAPL.

    Additional disclosure: I am a business development consulting and was paid to write a report on the company

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