Redneck Tale # 38 – Still waiting for the Ford Motor Company
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Impatient with just plain "breakeven"
Today is Saturday and the stock markets are resting, at least they are in this hemisphere. About a month ago I told you nice people about my desire to make a million bucks profit by purchasing a few shares of Amerilithium Corporation (AMEL), a holder of mining rights to vast deposits of lithium ores that are used in batteries and as lithium medicine to help cheer up those of us who may be depressed. Nothing depresses much more than does poverty, right? If my AMEL shares boom upward in value, whatever depression ails me will disappear. A month ago I had been told that it was possible that the Ford Motor folks might be interested in acquiring AMEL. If so, the scuttlebutt had it, the share price could go above five dollars.
I kicked in 63 cents each to buy my several shares of AMEL. Obviously, Ford did not want to scoop them all up, thus rewarding me for having waited around patiently for almost a month. In the meantime, the Dow Industrial Average ($INDU) has bobbled around, first sinking like a rock and finally rising again, at least a little. During those gyrations, my AMEL share price never went below what I had paid for the things. Yesterday, July 9th, the share price of AMEL at market-close sat at 76 cents. If I were to sell them all, I would exactly break even because of the buy-sell broker’s fee that totals $20. In other words, AMEL has already earned me a gross profit of almost 21% inside of a month.
Now then, I am really a total amateur when dealing with stock market things, like the valuation of shares of company stock – indeed of assessing the real worth of a company, either large or small. All the same, I am a believer both in history and in the likely expertise of those who have long earned their livings by buying and selling shares of stock. As to history, I can see that AMEL share values have gone up and they have also gone down. When their price got low enough, people would buy the things such that the price went up again. As to the expertise of successful stock market professionals, some of the better of them have declared that whenever various "indicators" say things that they can hear, share prices go up – or they go down.
On top of those things, I also believe in the immediate and down-the-road future of lithium mining. Even if Amerilithium Corporation (AMEL) is operated by a bunch of rednecks like me, it is going to be as difficult to screw up a lithium mining company as it would be to screw up a gold mine full of 20-pound nuggets of gold. At least, that is how I see things.
One of the share value indicators is known as "Bollinger Bands," and it has to do with prices and share sales quantities and the like. On a stock chart, such as the one shown here for AMEL, you can see that whenever the Bollinger Bands constrict, there follows a share price change either up or down. So, I had waited around after the price dipped a whole lot, the bands constricted, and the share price was on its way back up again. That’s when I popped my several dollars into the game. As you can see from the chart, the per-share price rose to over 90 cents. Then the price went back down again to where it was yesterday, 76 cents a share.
How can I goose Ford Motor Company into action?
Looking at the chart I could see that the price per share never went below about 60 cents. I feel that history was telling me that I am not likely to lose more than my brokerage fees – so I intend to let the Ford Motor company come on in with me in this bigtime lithium mining gamble. I can also see that the Bollinger Bands are singing a very strong price change song. They are really constricting right now. Big things may be afoot.
I do have a question. That is, I am requesting suggestions from all who read this article: Is there some way that anyone can think of by which I might be able to goose the Ford Motor Company into doing the AMEL lithium mining thing with a wee bit more alacrity?
After all, I am not getting any younger, my money is not self-reproducing, and an old man’s patience is easily strained to the breaking point. Your kind advice may just help me to stay away from doing something both rash and unproductive. The one thing I do not want to hear is "Sell your shares right now, Gus."
I cannot make a million bucks that way. No I can’t.
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Austinstar - Gotta smile,Good Friend! You really want me to go to jail. But I do like the part about telling Ford how much I love "their" Volt car. That would be a fun deal, no matter anything else.
Gus :-)))
Sounds like another Enron scandle to me. lol. I tried stocks at one time. Maybe I didnt have enough paitience. Good luck Gus.
Thanks John - I had 100 bucks sitting in the trader's account and this looked like it might be a fun deal. I, too, lack patience - but I had that 100 bucks.
Gus ;-)
I can't get stocks into my blonde brain - it just doesn't compute. I let my accountant husband handle all that 'manly' stuff - ha ha. I know I would lack the patience - as in 5 minutes!
Hi Audrey - The stock market is like most anything else that folks can be coerced to spend money on... If people understood it, they would certainly avoid it.
Gus :-)))
I don't know a thing about stocks. NADA. BUT..if I did buy stocks, it would be in XEROX paper. I am a teacher and at my school we used 1000s of reams of paper each year. (can't afford the math workbooks.......)
Gus I love your follow up - what's up with Ford don't they know about your analytical work?
bayoulady - It might be of interest to you that the Xerox Corp. had its beginning in 1906 as the Haloid Photographic Company.Back in the early 1950s I was an X-ray tech in the USAF. We had long used Kodak X-ray film in our work. One day, in came boxes of "Haloid" film.It turned out to be surplus X-ray film dating from WW-2 days, complete with imprints from peoples' hands, cockroaches and other bugs, plus large film areas where the film emulsion had disappeared.Don't misunderstand, now, for I have a big package of 24# Xerox paper sitting next to the computer printer. Good stuff.
Gus :-)))
b.a.d. - We take "love" anywhere we can find it these days. Money spends better, but "love" is warmer.
The best suggestion thus far came from our good friend, Austinstar. Here's her advice: "Write a real impressive letter to the CEO of Ford telling him how much you love the Volt car! I know it's a Chevy, but perhaps it will shock him into investigating the futures of electric cars."
Can't you just see the reaction at Ford's HQ?
Gus :-)))
Hey Gus, I looked in to your stock a little when I read this a few days back, meant to suggest that you post a question to http://hubpages.com/profile/tom+hellert , as he is a geologist.
This little company is dead broke, and you have to wonder what they did with all their cash, as they don't actually 'own' any lithium producing property or any other material assets, apparently just the interest in some sort of first rights position or something.
Anyway, the big question that comes to mind for me, is the question of the lithium value, where are the other sources, who is already making greater strides in mining lithium here or globally.
Tom Hellert might be able to shed some light on lithium deposits, etc... as well as on whether this looks like nothing but a scam, as in issue stock and spend the money like crazy, and spin the story like crazy.
Most of the battery stocks are way down right now, the electric car thing in the news lately has hardly budged them much. However, in the existing 'cap and trade' bill, among its gazillion pages, is the directive that houses must be built in future with a PLUG in the garage to accommodate electric vehicles.
Hi Katie - Yes. I understood going in that the company had virtually no money. What they did have they spent on who-knows-what. You are correct. They own no lithium properties themselves. It is fascinating that their stock price is holding up at all. Tom Hellert would be a good person to contact in the event one really wanted to evaluate this outfit, but I am in for only pennies and a lot of curiosity. Thanks, Katie, for the great comment.
Gus :-)))
Well....I'd still ask him about lithium deposits in the US, etc.., it's got me curious!
Hello again, Katie - I understand that lithium (compounds) today come mostly from S. America - Chile, Bolivia, Argentina (like 70% of the world's current production.) The US Geological Survey has it that the second largest LI reserve is our own Nevada where evaporated ancient sea brines dumped lots of lithium and other stuff almost literally atop the ground in places.Other places where lithium can be had are in Canada and Australia. I even posted a recent article dealing with the huge mineral deposits in Afghanistan, lithium being just one of those.
My plan is to ignore all of the BS that these stock peddlers throw around and keep my stock sell order onto the breakeven number. If the stuff moves on up, I can move the sell order on up if I can gather up the patience to do so.
Fact is, no one should believe a word that these stock promoters speak, but ever since I watched this crazy Russian chemistry professor explode some sodium by tossing a lump into a jar of water, these very reactive metals, like sodium and lithium, have caused me to "react." I never had seen the like of that deal before then.
Anytime you want to know where most anything sits in the ground, you can look it up in the USGS data - but you are right - I should probably make contact with Brother Hellert.
One thing that I can relate to you is that I got into that stock for the fun of it- not enough $$$ to amount to anything - in fact, so few bucks that the broker's buy-sell fees make it so that I have to gain a lot in stock price to break even dollarwise. If I ignore those broker's fees, I have been in profit heaven ever since I got into the thing. Knowing what I knew then and now, it was much like buying a bolt holding the Brooklyn Bridge together!
Hey - our new sampsonveteran thing here on Hubpages is going along better than I had expected it to. It has a 90 rating overall and about 1,000 page reads thus far. Not bad for a bunch of old knockers - right?
Gus :-)))
Hmmm - so the question seems to be, who does a CEO listen to? Do you know how to caddy?
Hi sheila b. - Here is what I do know from within my vast store of knowledge gained over these many years as an observer of industry: CEOs had best not be listening to me, or we will all be goners!!!
Gus :-)))
Well...whether or not you make a fortune on your lithium shares to purchase that great old Ford car or not...you seem to be having fun. Maybe writing about your "vast investment" on HubPages will earn you more in the long run. No brokerage fees!!! :)))
Hi Peggy - You said it well. That lithium investment was the best, almost-100 bucks I ever put down. The share value goes up and down - mostly down - but the company is having their fun, too.
Gus :-)))
Austinstar Level 7 Commenter 22 months ago
Write a real impressive letter to the CEO of Ford telling him how much you love the Volt car! I know it's a Chevy, but perhaps it will shock him into investigating the futures of electric cars.
You and all your friends should do Google searches on Ford+Lithium+AMEL and keep it up. Google will count the searches and when the numbers get up there, someone will take note and start spreading "advice" about the hot stock.
Start rumors about AMEL on Twitter and any other social media you and your friends can think of. You've got a good start here, backlink to all your hubs!
Hope this helps, Gus.