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Gold/Mining/Energy : Lithium -- Ignore unavailable to you. Want to Upgrade?

To: Cheeky Kid who wrote (460)	9/24/2009 5:58:57 PM
From: Condor	Respond to of 1146

Great item cheeky. Lets put er up full: Better Lithium-Ion Battery Plays than A123 Systems by: Rick Pearson September 24, 2009 \| about: ABAT / AONE / CBAK / CMTP.OB / HPJ This Battery maker A123 Systems (AONE) priced its $378 million IPO last night, selling 28.1 million shares at $13.50 each. The stock began trading today. The Company increased the deal size by almost 10% even after raising the offering price by 50% from the initially indicated range. Even if this IPO soars in the aftermarket, don’t feel too bad about being left out of the party because there are much smarter ways to play the lithium-ion battery market. Like China Bak Battery (CBAK), A123 is a money losing company trading on an excessively high valuation. Profitable alternatives such as Advanced Battery Technologies (ABAT), China Sun Group (CSGH.OB), Hong Kong Highpower Technology (HPJ) and China Digital Communication Group (CMTP.OB) all make for a better fundamental investment. In evaluating this IPO, I am a very biased investor because I refuse to invest in money losing companies. When a company is being well received by investors because its “losses are declining,” I don’t feel too bad about not being part of the IPO party. A123 does have an impressive client list including Chrysler and Black & Decker. However A123 has only generated $168 million in revenues since being founded in 2001. On revenues of $168 million, the company has lost $146 million since its founding. I repeat, on revenues of $168 million since 2001, the Company has lost $146 million. Comparing A123 to its rivals shows that A123 got one spectacular deal from its IPO price. A123 will have an initial market cap of around $900 million. Compare this to money-losing CBAK, which now has a market cap of $230 million. CBAK has generated revenues of $225 million in the past 12 months. Over the past 12 months CBAK has lost about $10 million. Clearly losing money is now the new trend in investing because CBAK soared 30% yesterday on news of the A123 IPO success. I think ABAT is a much better investment. With a market cap of $268 million, ABAT trades at only 13x ttm earnings (yes, that’s right, EARNINGS). ABAT was recently awarded a $3.4 million contract for electric vehicles. Despite being a profitable way to play the lithium-ion / electric vehicle market, ABAT only rose 3% yesterday. China Sun Group (CSGH.OB) is in the testing phase on lithium iron phosphate, the same product that is giving A123 such a valuation boost. CSGH.OB rose to a new 52 week high yesterday above $1.50 based on the A123 sentiment. CSGH.OB is profitable, cash rich and debt free and trades at only 9x earnings. Notice that A123 includes Black & Decker among its notable customers. Black & Decker is not a vehicle manufacturer, but a hand held device maker. As a result, comparing to other small-size lithium ion battery makers (i.e. batteries for hand held devices) is also appropriate. HPJ is a leading supplier of Nickel Metal Hydride batteries, and is moving into the lithium ion space. After its recent 50% run-up, the company trades at 17x earnings, but is profitable and debt free. HPJ rose as much as 10% yesterday. CMTP.OB, now known as New Energy Systems Group, is profitable, cash rich and debt free and is rapidly expanding in the lithium ion space, but still trades at a P/E of only 4x ttm earnings. CMTP.OB also rose nearly 10% yesterday. A123 may have fantastic technology and a great client list, but until it can demonstrate a clear path towards sustainable profitability I think it is meaningless as an investment. If A123 were a $100 million company with great prospects, it might be worth some kind of speculative punt. But at $900 million?! Don’t feel bad about missing out on this IPO. Disclosure: The author is long shares of ABAT, CSGH.OB and CMTP.OB. seekingalpha.com

To: Cheeky Kid who wrote (460)	9/25/2009 10:17:08 AM
From: Condor	Read Replies (1) \| Respond to of 1146

Gold Summit, Canada Lithium start drilling at Paymaster Ticker Symbol: C:GSM C:CLQ Gold Summit, Canada Lithium start drilling at Paymaster Gold Summit Corp (2) (C:GSM) Shares Issued 10,277,460 Last Close 9/24/2009 $0.22 Friday September 25 2009 - News Release Also Canada Lithium Corp (C:CLQ) News Release Ms. Andrea Rascati of Gold Canyon reports GOLD SUMMIT AND CANADA LITHIUM START DRILLING FOR LITHIUM BRINE IN NEVADA Gold Summit Corp., operator on behalf of joint venture partner Canada Lithium Corp., started drilling at the Paymaster property on Wednesday, Sept. 23, 2009. Initially, one hole is planned to a depth of approximately 400 metres to explore for potential lithium brine in subsurface aquifers. The site was selected on the basis of geochemical and geophysical data collected and interpreted over the past year. Canada Lithium Corp. holds a 75% interest in the joint venture and Gold Summit Corporation holds 25% (news release March 9, 2009). Field work and data studies are underway in a number of other basins in southwest Nevada, selected from field and office studies undertaken in 2008. This work is expected to lead to the selection of other drill targets. GSM explores primarily in Nevada for high grade gold and gold/silver deposits that would support underground, low cash cost operations. GSM's primary properties cover four Tertiary epithermal vein districts. All have drill ready targets defined by surface work, most with bonanza grades in outcrops or discovery drill holes. At the recently acquired Sugarloaf Peak property, work on a SURPAC generated 3D model and resource estimate is complete and form the basis for a National Instrument 43-101 report to be issued shortly. The 3D model developed for the deposit will guide new drilling to add to the resource. The Company's flagship property, Monte Cristo, contains a NI 43-101 compliant inferred resource estimate of 331,000 tonnes averaging 6.5 g/t gold. A new resource evaluation and NI 43-101 report is planned to include drilling results obtained since the completion of the first report in 2006. High grade shoots that form the heart of the resource are open down plunge and the Company plans work to extend these. Larry Kornze, a GSM director and a registered Professional Geologist, is designated as the Qualified Person under National Instrument 43-101 and has reviewed and approved the contents of this news release. ? 2009 Canjex Publishing Ltd.