LKE rallied over 15% yesterday making it the market’s top performer although there was a definite relief rally feel about the move. Last month we saw the stock plunge after the MD quit and sold his stock in a move that clearly raised some questions about the company’s proprietary clean extraction technology. This company is backed by the Bill Gates-led Breakthrough Energy Fund with its flagship Kachi project situated in Argentina where 40% of the world’s lithium production already comes from suggesting the $1.7bn business has some real value but this year’s 54.5c – $2.56 trading range illustrates how tough people are finding it to identify exactly what it is.
- At this stage we see better risk / reward in the more mature companies in the “Green Energy” space i.e. LKE is still more than 50% below its April high.
MM is neutral LKE
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