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Western Lithium Reaches for the Sky

|Includes:Lithium Americas Corp. (LACDF)
 In our August the 18th Blog (summary listed Below) we commented that if you were in need of excitement type CVE:WLC into "Google Finance" and see where it takes you. Over the last year the shares are up 367 percent versus the near 26 percent return for the S&P.
What to do now? Well we compared the potential of the Western Lithium story to a similar potential ten bagger of Aber Diamonds (Now known as the Harry Winston Diamond Corporation) in the early 1990s. The Aber upside was rather like a 62.5 bagger. The chart below shows that Western Lithium progress has been rather like climbing the stairs. From December 2008 to the end of january 2009 the shares jumped from 11 cents to 90 and the from July to late August 2009 the shares surged again from 57 cents to $1.23.
We suspect the company is set to announce shortly good drilling results or another placing (to pay for the drilling, due to a lack of earnings). So, as back in August 2009, the company continues to a "Momentum Act of Faith" until we obtain a clearer picture on future earnings.
We no longer hold Western Lithium in our model Beacon Master Portfolio, having taken profits at $1.49 on October 27, 2009. Our only exposure to this sector in our model portfolio, is our recent purchase of Neo Materials Technologies. 
For those wishing to know more on the potential for rare earth metal stocks, please seeJason Hamlin Seeking Alpha's January note.


Source: Google Finance


Disclosure: No Positions
Stocks: LACDF