Lithium Breakout Spotlight on Lithium Corporation. (OTCMKTS:LTUM)

Lithium Breakout Spotlight on Lithium Corporation. (OTCMKTS:LTUM)

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Lithium Corporation. (OTCMKTS:LTUM) is the next contestant on “who wants to be a millionaire lithium mining investor!” Every day, the market seems to find the next superstar of the lithium space. LTUM just caught the spotlight this past week, and went right into orbit. From Monday to Friday, the stock rose as much as 200% as volume went through the roof. To get a sense of how aggressive the advance in the stock is, consider this: LTUM’s 200-day simple moving average closed the week at $0.073. The stock closed it at $0.279, nearly 4x higher. But is LTUM a legitimate player in the lithium game?

We don’t have any obvious catalysts for the stock. No filings. No press releases. No news at all. Just a gigantic ripping rally. As far as the lithium space in general, the big news of the week was likely from car and battery maker Tesla Inc (NASDAQ:TSLA). Elon Musk’s revolutionary company announced a bold new strategy in the trucking space. We will have some thoughts on this and other catalysts for the stock and space below, but let’s first take a top-down look at this company.

Lithium Corporation. (OTCMKTS:LTUM) trumpets itself as an early stage mining company based in Nevada and devoted to the exploration of lithium, graphite and associated battery related materials. The company engages in the identification, acquisition, and exploration of metals and minerals in Nevada. It explores for lithium/boron/potassium, graphite, gold, and silver deposits.

The company owns interests in the Fish Lake Valley property that includes 143 claims covering an area of approximately 11,360 acres located in northern Esmeralda County in west central Nevada; and San Emidio property comprising 20 claims, which cover an area of approximately 1,600 acres located in Washoe County in northwestern Nevada.

It also holds interests in the BC Sugar flake graphite property covering an area 19,816 acres located in the Cherryville area of British Columbia; and Hughes claims located in the 6 discrete prospect areas of Nevada. The company was formerly known as Utalk Communications Inc. and changed its name to Lithium Corporation in September 2009. Lithium Corporation was founded in 2007 and is headquartered in Elko, Nevada.

According to company materials, “Lithium Corporation is an exploration company based in Nevada devoted to the exploration for energy storage related resources throughout North America, and looking to capitalize on opportunities within the ever expanding next generation energy storage markets.  The Company maintains a strategic alliance with Altura Mining, an ASX listed natural resource development company that is currently developing its 100% owned world-class Pilgangoora lithium pegmatite property in Western Australia.”

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As noted above, shares of LTUM blasted off on the upside last week as the next company to grab the lithium spotlight and capture the attention of momentum traders and investors everywhere. The only clear catalyst for the lithium space during the week was TSLA’s decisive move into the trucking sector.

We already know that Wal-Mart (WMT) and JB Hunt (JBHT) are on board as future customers. And we would expect there will be more to come. If you thought demand for lithium was set to be huge over the coming decade before, imagine what those numbers might adjust up to if we also assume that every freight truck on the freeway is running on a huge bundle of lithium-ion batteries.

Recent action has seen above 200% tacked on to share pricing for the company in the past month. Market participants may want to pay attention to this stock. LTUM has a history of dramatic rallies. Moreover, the stock has registered increased average transaction volume recently, with the past month seeing just under 570% beyond what we have been seeing over the larger time frame.

Currently trading at a market capitalization of $24.5M, LTUM has a stash ($356K) of cash on the books, which compares with virtually no total current liabilities. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $LTUM stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $LTUM, either long or short, and we have not been compensated for this article.

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