Here is a story that happened within the stock market today. It is a demonstration of how volatile the markets can be.
After watching the TDF this morning, I took a look at CNBC stock channel to see if anything exciting might be going on. I have been on vacation most of the summer with the stock market, so I hit it lucky for this story.
CNBC was interviewing a money manager who has announced that he is retiring, Lee Cooperman. I had never heard about him but from the comments he is well respected. Near the end of the interview, he was asked about a couple of his favourite stocks he is presently buying. So he mentions Largo Resources. He says it has discovered vanadium Pentoxide, an element used in hardening steel and also used in batteries. He said that it is important to steel because China has been insisting on better steel in its imports. Also, it is used in batteries and with the coming of electric vehicles, it has a promising future. How many times have we heard this about almost everything except graphite? It almost made me give up, except that my thoughts went right away to how many people watch CNBC. What has this done to LGO:CA? It was about what I expected.
LGO has traded as low as 35 cents in the last 12 months. Recently, it traded around $1.70. By the time I brought up today’s chart, it hit a high of $2.68. The volume did the same. At the time it had hit 9.34M. The day’s trading was only half done, but I do not expect it to continue at that pace. Indeed, by the time I had read more information about the company, LGO is back to $2.
My thoughts drifted to consider, what if he had said, Zenyatta Resources? I’m rather pleased that it was not ZEN. Do we really want the roller coaster ride? We are going to get the attention we deserve, but I would rather the revelation come when we are better prepared for it. There are many small companies in the rare earth sphere claiming to be the next great stock. They had a run back around the year 2005-2010, but none could go anywhere and they remain small companies largely ignored in the investment community.
A little later they interviewed another person. He made a comment that the world is awash with venture capital looking for a place to earn a decent return. I think we will do well and our future looks good.
Liz |
