J Capital is short Lake Resources (LKE ASX)
Lake Resources (LKE ASX) “Lake” is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine. If Lake can get the DLE technology to work then it plans to build a $1 bln processing facility in a remote location in the Andes.
Lake is claiming to produce “cleaner lithium.” We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would. Lake insiders have successfully sold $8.1 mln in stock in the last year. Lake granted 41.5 mln options to financial institutions that published favorable research on
the company. Insider share sales have followed a pattern of Lake announcement, followed by favorable research, stock price rise, and then insider sales. Investors had been expecting the delivery of the pilot plant to site and a definitive feasibility study (DFS) by the end of June. Instead, they got the resignation of the CEO and Managing Director Steven Promnitz without a replacement.
Lake is claiming to produce “cleaner lithium.” We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would. Lake insiders have successfully sold $8.1 mln in stock in the last year. Lake granted 41.5 mln options to financial institutions that published favorable research on
the company. Insider share sales have followed a pattern of Lake announcement, followed by favorable research, stock price rise, and then insider sales. Investors had been expecting the delivery of the pilot plant to site and a definitive feasibility study (DFS) by the end of June. Instead, they got the resignation of the CEO and Managing Director Steven Promnitz without a replacement.
FEATURED REPORTS
|
March 23, 2022
FFX ASX
White GoldWe are LONG Firefinch.
The political risk in Mali has scared investors away from investigating the value of Firefinch (FFX ASX). We believe Firefinch’s under-appreciated lithium asset, Goulamina, alongside its operational gold mine, Morila, are significantly undervalued based on the current market capitalization.
We view both the gold and the lithium project as de-risked, as they are operational and fully funded respectively. We believe Firefinch should be trading at a valuation of between $1.68 bln and $2.28 bln. With the current market cap at $990 mln, the upside is between 70% and 130%. The catalyst for a reappraisal of the company’s value is when Goulamina is spun out and separately listed as Leo Lithium at the end of this month. Only Firefinch shareholders, on the day of record, will receive pro-rata entitlement of Leo Lithium shares and an entitlement offer for an additional capital raise for Leo Lithium. One last step, the establishment of an approved Malian subsidiary to hold the mining and exploration rights of the project, is now required before the de-merger proceeds. |
|
June 24, 2021
CDXC USAn Oceans 11 of stock promoters |
May 28, 2020
NG TSXPipe Dream |
December 18, 2020
CBAK USThe Undead: Why CBAT Has Zero Value |
|
IAfter months of examining ChromaDex (CDXC), we have come to the conclusion that this company, which sells a health supplement called Tru Niagen, is pure hype, dished up by an Oceans 11 of stock promoters. CDXC promotes its single product with iterative press releases that boost share price long enough for insider sales before the vaunted advantages contained in those press releases quietly disappear.
The SEC has labeled the team behind CDXC “micro-cap fraudsters” who manipulate share prices and then “dump” the stock. Not only is the management team dubious, but so is the auditor. CDXC uses Marcum LLP, which the PCAOB says is riddled with deficiencies. The latest promote is a Walmart distribution deal, announced twice, in March and in June, for full effect. The company frequently announces deals that end up producing virtually no sales. After reviewing the company’s reported acquisitions and dispositions since 2012, we believe they have provided negative real value to shareholders but payoff to insiders. |
Lake Resources (LKE ASX) “Lake” is one of several lithium explorers planning to use an unproven direct lithium extraction (DLE) technology to remove lithium from brine. If Lake can get the DLE technology to work. then it plans to build a $1 bln processing facility in a remote location in the Andes.
Lake is claiming to produce “cleaner lithium”. We believe, however, DLE will still use large amounts of water and produce toxic waste. Lake has failed to get an operational pilot plant on site three years after promising it would. Lake insiders have successfully sold $9.7 mln in stock in the last year. Lake granted 41.5 mln options to financial institutions that published favorable research on the company. Insider share sales have followed a pattern of Lake announcement, followed by favorable research, stock price rise and then insider sales. Investors should follow the money. |
CBAK Energy Technology Inc. (CBAT) represents the barely re-animated corpse of CBAK, a Chinese reverse merger that lost all its manufacturing assets to default in 2014. In 2015-16, CBAT raised $113 mln from investors to build new factories—and, we will show, appears to have simply taken a lot of that ...
|
Cartoon by Johannes Leak
Disclaimer
The reports and other commentary displayed are for information purposes only and should not be relied upon as investment advice. The information provided is not a complete analysis of every material fact regarding any country, region, or market. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of the date of this posting and may change without notice.
Opinions are intended to provide insight on macroeconomic issues and commentary is not intended as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy.
Investments involve risk. The value of investments can go down as well as up, and investors may not get back the full amount invested. The information contained in these reports has not been reviewed in the light of your personal financial circumstances. Reliance upon the information is at your sole discretion.
The reports and other commentary displayed are for information purposes only and should not be relied upon as investment advice. The information provided is not a complete analysis of every material fact regarding any country, region, or market. Because market and economic conditions are subject to change, comments, opinions and analyses are rendered as of the date of this posting and may change without notice.
Opinions are intended to provide insight on macroeconomic issues and commentary is not intended as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy.
Investments involve risk. The value of investments can go down as well as up, and investors may not get back the full amount invested. The information contained in these reports has not been reviewed in the light of your personal financial circumstances. Reliance upon the information is at your sole discretion.