Amerilithium, Corp. (OTCMKTS:AMEL) Emerges with Record Buying

Amerilithium, Corp. (OTCMKTS:AMEL) remained hidden for a while, quietly deflating in price on low volumes. But the past month awakened trading, leading to Monday’s record volumes. AMEL rose by more than 270% to stand at $0.01 on buying volumes of $657,000, as nearly 100 million shares were mopped up. AMEL was also extremely active last Friday, when another nearly 50 million shares found buyers. This marks two consecutive days of absolute records in share volume, and puts the question of a turn in the tides.

AMEL has not been promoted since the spring of 2013, and even then the campaigns were no-compensation events. The ticker, at its low positions, had days of spectacular gains, though the general trend was downwards. But the new year, with updates on financial results and hopes about electric car development managed to turn the tides, at least for now.

In its latest presentation, AMEL claims to have already gathered more than 700,000 acres in mining properties, as well as proximity to a lithium producing factory. Added to this is the expectation that Tesla Motors, Inc. (NASDAQ:TSLA) would be building its Gigafactory, the largest battery production facility.

A partnership between those two companies sounds like the most amazing news, but don’t forget that there were rumors a couple of years back that Ford Motor Co. (NYSE:F) would be buying up AMEL. It may be just a matter of hype and expectation that AMEL would be mixing up with Tesla Motors. What is a bit strange is that AMEL has not had any dramatic updates on its lithium mining activities, and the basic information is the same since the name change from Kodiak International in 2010. The latest financials are more revealing of how well the company has been faring:

• $7,536 cash

• $3.5 million total assets, incl. mining claims

• $482,222 total current liabilities

• Zero revenues since inception

• $2 million net loss for the September 30th quarter of 2013

As it is easily seen, AMEL has been running on promises for quite a while, 116 months to be more precise, and the summer of 2013 came with extraordinary expenses. So it is a bit far-fetched to expect the company could easily swing to positive earnings, even if it indeed manages to find a link to the Gigafactory- still a project on the idea level.

AMEL is attractive both for the low price and the fact that it is among the few moving tickers that are not tenuously related to the cannabis sector. In the last few days, we saw among those Marina Biotech, Inc. (OTCMKTS:MRNA), an ambitious pharmaceutical developer that grew its price five times in 2014, though for now the position is a bit lower, at $1.24, down from the peak at $1.70.

While AMEL climbed, investors generally enjoyed the ride, though there are gloomy prognoses that the run upward will be followed by a carnage of selling. If you still believe the ticker can relive the best days, it is still advisable to base the decision on your own research and not on the exuberance and future promises.