Are all Lithium Mining Plays SCAMS?! I take a look at LIEG, AMEL, LTUM, AMLM and BHWX

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Are all Lithium Mining Plays SCAMS?! I take a
look at LIEG, AMEL, LTUM, AMLM and BHWX
Li3 Energy Corporation (LIEG) Amerilithium
(AMEL) Lithium Corporation (LTUM) American
Lithium Minerals (AMLM) BlackHawk Exploration
(BHWX)
BLACK HAWK MINES
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In my previous life as a paid promotion site, I
got to see any number of companies and sectors
pushed and promoted that didnt deserve to
be! It seemed that every week I was doing an Oil
and Gas Play.  Alternative energy plays were very
popularbiofuels and solar, too.  BUT, the clear
winner over the past year has been the Lithium
mining sector.  I saw a succession of mining
plays like LIEG, AMEL, LTUM, BHWX and AMLM parade
across the paid promotion universe.   They did
just want pump and dumps should dothey
skyrocketed and then fell.  They all has slick,
professional websites that touted that Lithium
was the energy source of the future.  It may
well be, but these companies are very far away
from being viable companies. The truth is I did
alerts on all of these companies at one time or
another over the past year.  I just ran across
LIEG the other day and have added it to my list
since it is in the lithium mining business and it
is a paid promotion stock, too.
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Is Lithium the energy source of the future? It
certainly is when it comes to batteries for
electric cars.  Greentech Media published an
article by Mark Boslet called Lithium Battery
Oversupply Debate Rages (click here to read).
 It was an entertaining article that makes a case
that the future demand for Lithium batteries will
be extremely strong.  Certainly Obamas
multi-billion dollar investment in Lithium
battery technology should bear some fruit for the
domestic battery and electric car industry. Here
are just a few facts that I have gleaned about
Lithium The Obama administrations Energy and
Environmental plan requires increased lithium
production because the plan calls for ONE MILLION
hybrid/electric vehicles on American roads by
2015 and is investing BILLIONS to jumpstart a
domestic electric battery industry. It may play
a vital role to the future of the automotive
industry. In fact, According to a new report from
Pike Research, this market growth will create
a Li-ion transportation battery industry with
nearly 8 billion in sales worldwide by 2015, up
from 878 million in 2010.
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That is bound to have a HUGE impact on lithium
mining companies.  I read somewhere that it take
60 to 70 pounds of lithium carbonate to make the
batteries that will go in the typical Electric
vehicle.  Clearly, lithium is going to be a hot
commodity going forward.  I am not sure that
these companies are going to allow you to take
advantage of the demand for Lithium. Are all
Lithium Mining Stocks scams? I sure hope not.
 But, they have been a very popular pump and
dump stock lately.  If you  are still interested
in Lithium and want to get out of the pump and
dump world their is always the new Lithium ETF
 LIT (Global X Lithium ETF)
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There are larger mining concerns that are
producing and viable (Chementall and SQM from
Chile, FMC Lithium and Tallison Minerals from
Argentina), but LTUM, AMEL, AMLM, BHWX and
LIEG arent there yet.   Most current production
is in what is known as the lithium triangle or
lithium ABC Argentina, Bolivia and Chile.
 U.S. mining is concentrated in Nevadas Clayton
Valley where several of these companies have
exploration properties. (and Chementall Foote has
the only producing U.S. Lithium mine).  By my own
unscientific estimations, these other companies
are many, many years away from viability. I did
notice that LTUM and AMEL seem to be run by the
same group since their websites are eerily
similar.  So.some Lithium plays are so lazy they
just recycle information off of another website.
 And, still people bought both stocks hand over
fist when the pump was going on.
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Lets take a look at these U.S. Lithium Mining
Companies As you can see their charts are
remarkably similar.they hit the ground running
with lots of paid promotions and a great deal of
buzz.  After initial success, most of the price
action has been down.  In fact, all are trading
significantly below their recent highs.
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LI3 Energy, Inc. (LIEG)
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Amerilithium Corporation (AMEL)
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Black Hawk Exploration, Inc. (BHWX)
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Lithium is going to be a hot sector for many
years to come.  I am not sure that any of these
companies are going to hit the jackpot in the
long run, but if you are a gunslinger trader you
can certainly play the next pump on any one of
these stocks.  Just be careful with these and any
other of the hottest stocks that gets
touted. When I introduce my paid newsletter site
in another month, I will give traders the
opportunity to take advantage of my research,
experience and knowledge to pick the right
stocksfree of hype and manipulation.  I dont
have anything against any of these stocks.  I
expect that very few of them will be around in a
year or two, but I could be surprised.   Paid
promotions (also called pump and dumps) are a
great way to LOSE money for most traders.  Just
be careful when you get the email or piece of
mail touting the next hottest thing.  It might be
hot, but only long enough for the promoters to
make money!  Not you, though!
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Here is what I am looking at for entry/exit
points HA HA HA HA HA HA HA HA! (yeah,
right!) Good Luck and Great Trading, Jeffrey
Dean About InvestorSoup InvestorSoup.com is
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