Tag Archives: Lithium

Replication strategy might be detrimental to shareholder

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 Global X is set to begin trading their “Global X Lithium ETF” (LIT) this Friday July 23rd. This will be a first of its kind fund on any exchange as the highly reactive metal isn’t traded on any commodity exchange. The Global X Lithium ETF will seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index. 

 

 

 

 

 

The Underlying Index is free float adjusted, liquidity tested and market capitalization-weighted index that is designed to measure broad based equity market performance of global companies involved in the lithium industry, as defined by Structured Solutions AG. As of June 30, 2010 the Underlying Index had 20 constituents, 60% of which are foreign companies. The three largest stocks were SQM, FMC Corporation and Rockwood Holdings. The Fund’s investment objective and Underlying Index may be changed without shareholder approval. Shareholders will be given 60 days’ prior notice of any such change.

The Underlying Index is sponsored by an organization (“Index Provider”) that is independent of the Fund and Global X Management Company LLC, the investment adviser for the Fund (“Adviser”). The Index Provider determines the relative weightings of the securities in the Underlying Index and publishes information regarding the market value of the Underlying Index. The Fund’s Index Provider is Structured Solutions AG.

 

 

The one space where I think an actively managed ETF would be a boon to investors is in the financial sector. That may seem surprising given how down I am on the sector and how down I’ve been on it since before this site started, but that is exactly the reason why an active ETF could make a lot of sense. If you look under the hood of just about any financial sector ETF and what do you see? If it is a domestic fund you see JP Morgan (JPM), Bank of America (BAC) and Citigroup (C). If it is a foreign sector fund you see HSBC (HBC), Banco Santander (STD)–the one from Spain– and a French bank or two. Further down the list you’d probably see some UK banks.

People have made great trades on a lot of these names but in terms of investing I want no part of them. There is no convincing me there are no more shoes to drop (something I have been saying all along). An actively managed financial sector ETF could potentially bypass or at least underweight US and European banks.

 

 

The Adviser uses a “passive” or indexing approach to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to “beat” the Underlying Index and does not seek temporary defensive positions when markets decline or appear overvalued.

The Fund will normally invest at least 80% of its total assets in the securities of the Underlying Index and in depositary receipts based on the securities in the Underlying Index.

The Fund will use a replication strategy. A replication strategy is an indexing strategy that involves investing in the securities of the Underlying Index in approximately the same proportions as in the Underlying Index. However, the Fund may utilize a representative sampling strategy with respect to the Underlying Index when a replication strategy might be detrimental to shareholders, such as when there are practical difficulties or substantial costs involved in compiling a portfolio of equity securities to follow the Underlying Index, in instances in which a security in the Underlying Index becomes temporarily illiquid, unavailable or less liquid, or as a result of legal restrictions or limitations (such as tax diversification requirements) that apply to the Fund but not the Underlying Index.

 

 

 

 

Correlation: Correlation is the extent to which the values of different types of investments move in tandem with one another in response to changing economic and market conditions. An index is a theoretical financial calculation, while the Fund is an actual investment portfolio. The performance of the Fund and the Underlying Index may vary somewhat due to transaction costs, asset valuations, foreign currency valuations, market impact, corporate actions (such as mergers and spin-offs), legal restrictions or limitations, illiquid or unavailable securities, and timing variances.

The Adviser expects that, over time, the correlation between the Fund’s performance and that of the Underlying Index, before fees and expenses, will exceed 90%. A correlation percentage of 100% would indicate perfect correlation. If the Fund uses a replication strategy, it can be expected to have greater correlation to the Underlying Index than if it uses a representative sampling strategy.

Solactive Global Lithium Index:
 
The Solactive Global Lithium Stocks Index is designed to reflect the performance of the lithium industry. It is comprised of common stocks, ADRs and GDRs of selected companies globally that are primarily engaged in some aspect of the lithium industry such as lithium mining, exploration, investing, and lithium-ion battery production. The stocks are screened for liquidity and weighted according to free-float market capitalization. A specific capping methodology is applied at the semi-annual index review to facilitate compliance with the rules governing the listing of financial products on exchanges in the United States. The index is maintained by Structured Solutions AG.

 

 

Mobile Phones Need Lithium To Stay Alive

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In our drive to get granuloseer, increased baron and thirster use of our Mobile River accessories like cell phones, laptops, recording and play-back devices, the unsung hero has to be the subordinate battery. In less than 40 geezerhood the market has been taken over almost solely by the lithium-ion battery — used in everything from desktop computers and cameras to ultra-thin cameras and recorders.
Just a 10? ago the norm for powering our mobile world was the nickel-cadmium battery. They were heavy, unwieldy and didn’t keep their power for any wide-eyed use. Sony (SNE 30.15 ↓0.27%) produced the first commercialized lithium-ion battery in 1991 and other manufacturers soon followed behind.

Lithium is a soft silver-white metal extracted from Spodumene, and ore found in North America, Brazil, Spain, Africa, Argentina and Russia. Other sources admit Lepidolite (found in Canada and Africa) and Petalite (found in Africa and Sweden).

now lithium-ion has become the Holy Grail for developers of faster, lighter, more sophisticated mobile devices. Its success is based on the fact that lithium is an extremely light metal and has tremendous electro-chemical potential. Moreover, it provides the largest energy density for its free weight, usually twice that of the accepted nickel-cadmium battery. Its high voltage of 3.6 allows economical, space-saving battery pack designs for applications such as cell phones and television receiver cameras.

Its low maintenance is a bonus, and they cause little harm to the environment when disposed. But it is a delicate metal and requires a protection circuit built into each application to maintain safe march.
Lithium Ion is the fastest growing battery organisation, especially useful where high energy density and light weight are important. It’s more expensive than other battery systems, but as research continues into capabilities, the uses will increase and the costs will likely be reduced.

approaching right behind is the Lithium Ion Polymer, a possibly lower cost version of the Lithium Ion systems. Its main benefits are its ability to fit into extremely slim housings (such as a cell phone or camera) and allows for simpler packaging than its predecessor. Apple (AAPL 263.8 ↑1.14%) computers have used Lithium –Polymer batteries in their end merchandise – the iPad, promising 9 to 10 hours of battery life for applications on the hugely successful mini-computer.

Computerized games, laptops, cell phones, digital cameras, video and levelheaded recorders all use lithium-ion or lithium-polymer power. As consumers demand lighter, faster, more readily accessible entropy the demand for better, lighter, more powerful batteries will increase exponentially. As long as there is a secure and steady supply of this lightweight metal we can look forward to increased demand for lithium in our mobile world.

Monika Forberger
www.lithium-stocks.net Writer

Going Forward The Best Companies Will Promote Lithium Batteries.

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Here’s a miniscule Jeopardy trivia for you  regarding the best lithium companies and MINERALS  . This soft, silver-coloured, highly reactive alkaline metallic ingredient with magnetic properties is found throughout the earth in igneous rocks and mineral springs . revealed in 1817 by Swedish chemist Johan Artwedson, who isolated it as a salt, it was a 7-Up soft drink ingredient until 1950 and is today a commons pharmaceutical appointed to treat mental illnesses such as depression and bi-polar disorder. It is used in air conditioning and industrial drying systems, is corrosive, poses a danger to unborn and breastfed babies and is in many batteries, ceramics, lubricating greases, optical glass and thermonuclear weapons. If you answered “What is lithium?” you are correct and modify to bypass the rest of this article. If on the other hand, you’d like to know more just about lithium trends and future forecasts, you may proceed to the next level.

Lithium enjoyed expanding markets significantly from WW2 up until 2008. Its only been lately that the postulate and growth  was largely due to increased lithium battery usage in lap top computers, cell phones and electric tools. In 2009, global and North American recession depressed lithium demands resulting in superabundance supply, a lithium battery situation that is hugly hoped-for by the market analysts to steam in front over the next five to ten years.  . Lithium consultants TRU Group Inc., hired by Mitsubishi to practice a market forecast, anticipate growth beginning again from 2015-17 until 2020 with the need for a new lithium pipeline and producers in order to keep up with demand.

While the price of lithium has seemed to persist constant, a dropping US dollar has artificially boosted lithium prices. (I.E. if the dollar had retained its value, lithium would have decreased in cost). Some forecasters predict and businesses hope an increase in e-vehicle sales will boost lithium markets. Increased incentives and tax-breaks for e-vehicle owners combined with a boosted economy could significantly increase the need for lithium due to increased battery demands nevertheless caution is prudent as continued recession could negatively impact the market leaving the current situation of lithium supplies in a surplus and costs rock-bottom for years to come.

The best way to prepare for that elusive stock rally is to equip your portfolio

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The exchange traded fund (ETF) market is booming along with the lithium market, and with it, we are seeing an increasing number of ETFs that track specialized market niches. Global X lithium is one such provider that offers specialized funds, and their lineup will continue to expand with a slew of interesting ETFs.

Roger Nusbaum of Random Roger notes that Global X has filed for several new and interesting ETFs. These include the Global X Aluminum ETF, Lithium ETF, Uranium ETF, Food ETF, Shipping ETF, Waste Management ETF and most obscure of them all, the Fishing ETF.

Roger’s initial take on these funds are as follows:

  • The Aluminum ETF could be quite volatile.
  • It will be interesting to see what stocks are included in the Lithium ETF- most of the world’s lithium supply comes from Latin America’s Sociedad Quimica y Minera (SQM). It will also be interesting to see whether this fund is more or less volatile than what is likely to be its largest holding, SQM.
  • Cameco (CCJ) will likely be a top holding in the Uranium ETF. Like the Lithium ETF, it will be interesting to see how volatile this fund is.
  • Depending on the direction, the Food ETF will either be a staples fund or a materials fund. If it is the former, the fund could be a good way to increase exposure to this area of emerging markets, which does not have many choices to choose from.
  • The Shipping and Waste Management ETFs are existing concepts, but there has been investor interest.
  • The Fishing ETF could provide a different way to make a play on the “citizens eating more protein” theme in emerging markets.

 

In a time where most exchange traded funds (ETFs), mutual funds, stocks and other securities are down, many investors have made some poor decisions. On the bright side, however, there are ways to minimize the impact of these errors.

Even the most famous investor of all, Warren Buffett, admits that he made investment errors by underestimating just how bad things could get and the depth to which prices could fall. On Monday, he said that the economy has “fallen off a cliff,” says Alex Crippen for CNBC. It’s clear that the extent of the damage has taken many by surprise.

So how can one make up lost ground?  The Associated Press states that it’s possible by following three simple strategies: save, invest and spend.

Newton’s third law states that for every action there is an equal and opposite reaction. This law will eventually hit the economy and stock market, and both will rebound.  Here are a few simple tools to follow to ensure that you can benefit from the opposite reaction while limiting the number of mistakes you can make that will hurt your portfolio further:

  • Invest in ETFs and indexes. This generally gives investors good exposure to sectors and markets and prevents one from banking on the rebound of an individual stock. Additionally, ETFs offer transparency, low-cost alternatives to mutual funds and tax efficiency. When doing so, keep a strategy in mind; we follow the trends.
  • Max out your 401(k). The philosophy of saving can’t be overlooked and one must keep retirement plans in mind.
  • Diversify your portfolio. Keep a balanced portfolio and don’t put all of your eggs in one basket. This generally protects you from market swings. Take a look at broad sectors using ETFs for a great range of exposure.

Meanwhile, the billionaires who turned a New Jersey resort hotel into a multibillion-dollar venture – Loews – have some suggestions for investors, because these tips are among the things that made them successful:

  • Watch out for the downside. Having an exit strategy will help you miss most of any downtrend if you hit the escape button when a fund goes below its long-term trend line or 8% off the high. This will also help protect any gains you might have made in the time you held the fund.
  • Be patient. Wait until areas move into their own uptrends, then proceed accordingly. Don’t react to rumors or fears. We’ll see the market moving again at some point. Don’t rush it.

Lithium Batteries

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Introducing 3vLithiumBattery.net.  Your top and number one online 3v lithium battery wholesaler.   We are the only online 3v lithium battery dealer that only sells high quality batteries that are not knock offs from china or Japan.  Today millions of knock off Duracell and Energizer batteries are made in china and Japan, and pawned off on you pore little power suckers to be continually disposed of.  I hate the fact that when we go to buy those crappy Chinese batteries, and know well have to buy more before the day is out but still continue to do it.  And we keep making them laugh all the way to the bank.

If you are buying your 3v lithium batteries from 3vlithiumbattery.net, you know you are only getting genuine top quality Energizer and Duracell batteries.   Because all of our batteries are official batteries strait from the respected package branded manufacturing business.  To make you witting, the top 2 battery manufacturers for 3v lithium batteries “Duracell and Energizer” use only the most pure of lithium carbonate in their process to making these tiny 3v lithium batteries.

90% of the lithium used to undergo the batteries at 3vlithiumbattery.net are made from carbonate-rich lithium brine.  The lithium carbonate is the active ingredient in lithium metal which is the chargeable metal inside those tiny button 3v lithium batteries.

Going with a cheap Chinese or Japanese battery is ok, if you don’t mind it burning out at the worst of times.  And cheep batteries are made from less pure grades of lithium.  Why?  Cause the quality and grade a huge determining factor of how long it can actually stay charged for.

When you turn over from a 3v lithium batteries manufacturer viewpoint.  You have to use the most pure of lithium metal, five nines quality, basically 100% which i think is basically impossible, but close enough.  Basically what im saying, is that cheap batteries use anywhere between 90% and 98% lithium metal and the big guys like Energizer and Duracell use almost 100% lithium metal which makes a huge difference in chargability and seniority of the charge, as well as gradually warring out instead of all at once.

These cheap batteries are the craps and ware out almost immediately, kind of like a few lithium stocks tarring around thinking they will become a producing lithium mine…

 

Using a good 3v lithium battery made by Duracell or Energizer is your best bet if you want a long indestructible battery that will take 100% longer to wear out. 

 

The First Lithium ETF

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China is a massive economy – the third largest economy in the world – and has been growing at about 15% over the last ten years compared to 3% to 8% for developed markets.  As a result, certain investors have an increasing need for tools that offer more targeted access to Chinese investments.  Historically, investing in this market was an “all or nothing” game. Investors weren’t able to easily access, for example, the Chinese industrials sector without also getting exposure to financials and energy companies. So we are setting out to expand the tools available to investors by giving them different ways to play China.

ETFdb: Dr. Burton Malkiel has long been of the belief that U.S. investors are underexposed to China. Do you agree with his view? If so, do you have any theories as to why they might be slow to adapt to China?

BD: I agree that most U.S. investors are underexposed to anything outside of the U.S. If you look at the size of equity markets in the U.S. versus the rest of the world and compare it to common portfolio allocations, you see very quickly that investors tend to tilt holdings heavily towards U.S. equities instead of spreading exposure based on the relative size of the various markets.

Bruno del Ama (BD): These ETFs offer focused access to specific sectors of the Chinese economy, similar to what sector SPDRs offer in the U.S.  As a point of comparison, there are 400-plus ETFs in the U.S. that offer exposure to various segments of the U.S. equity market.  By contrast, the options in China are very limited. And of the existing ETFs that offer China exposure, almost all of them focus primarily on mega-capcompanies.

 

Boom Continues

 

 

 

But this home country bias is changing, and investors are beginning to seek out more international exposure. I think part of the reason why investors have been slow to embrace international equities is simply because it wasn’t easy to do. A good example is China. A lot of people who are investing in China today were not investing in China before some of the ETFs currently offered were out there. It is now a lot easier and less expensive to gain international exposure – ETFs are facilitating that and it is clear that the demand exists.

ETFdb: Let’s talk about exposure to the consumer sector in China. It goes unnoticed that FXI, by far the biggest China ETF, has almost no exposure to the consumer industry. Why is exposure to this part of the Chinese economy important, and how mightCHIQ fit into a portfolio?

BD: Historically, the industrial sector has driven growth in China. But looking ahead, many investors expect the developing consumer base in China to play a major role in the country’s growth. Consumer spending in China accounts for only about 35% of GDP, half the level of the U.S., so there is significant room for growth. There are a number of factors that are likely to trigger this growth, such as income and credit growth, demographic trends, and even incentives from the Chinese government.

Incomes are growing along with the economy. For example, millions of Chinese are moving into the $5,000 to $6,000 salary base, which is when consumers typically start moving from pure staple type consumption to actually starting to consume discretionary items. The development of the credit industry, including credit cards, is also likely to have a positive impact on consumption – any growth in credit should have a positive impact on spending.

Another key factor is demographics. Historically, the working population in China had been growing much more rapidly than the population as a whole. This growth facilitates the development of a big production machine, but this segment of the population was in the saving part of their life cycle. For the last 10-20 years, as these workers have been getting older, they have started migrating from saving to spending in their life cycles. This inevitable process will trigger significant growth in consumption within China.  As far reached as it sounds, China will probably end up consuming more than it actually produces at some point in the future.

 

 

http://www.wikinvest.com/wiki/US:LIT

Bruno del Ama is the CEO of Global X Management, the New York-based ETF issuer behind several of the innovative exchange-traded products to hit the market in recent months, including the first ETFs offering investors exposure to Colombia and the Nordic region and the first sector-specific China ETFs. He recently took time out of his busy schedule to talk about China, ETF innovation, and more with ETF Database.

 

MC Capital Launches Lithium ETF

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The new exchange-traded fund soon to be launched that will invest in lithium-related companies. This is just one of dozens of new ETFs to hit the market this year. Many of these are quite specific, such as the Global X Lithium Brazilian Consumer ETF which invests in consumer-sector Brazilian companies, while others are broader such as the Mars Hill Global Relative Value ETF, which looks to generate positive returns through investments in companies of any size around the world.

Before jumping into a new ETF (or any ETF) consider a few things first: Is this new fund a response to demand for a particularly hot sector or area of the market? Platinum and palladium prices have skyrocketed in recent years – but is this the right time to invest (maybe yes, maybe no – I’m not calling it either way.) Buying in at the top of the hype is just chasing returns. If the fund is an index fund, what index is it tracking? What companies are in the index? The Wall St. Journal reports that some analysts are leery of the excitement around lithium; around 50 companies have cropped up to develop lithium in the past two years but odds are that most of them will never come into production. Finally does this type of fund really belong in your portfolio? If you already own mutual funds, it is possible your current funds already own some of the type of company you are interested in. Adding niche-type funds to your portfolio requires the same due diligence and research you should be giving to every other fund in your portfolio.

 

 don’t know who is choosing companies of both types, either lithium producer or present and future lithium users , for the new fund mentioned in the Wall Street Journal article noted below, but that individual or group of individuals will make all of the difference, among this new lithium ETF and any other lithium ETF that will be created now or ever. Before you invest in such a natural resource-based rare metal ETF, look carefully at its board of advisors and at its founders.

When I first encountered Euclidean geometry in junior high school 56 years ago, my understanding blossomed when the teacher ridiculed my answer to the question, ‘What is the reason that side A of the figure equals side A of the same figure? My answer was “it is obvious.” The very good teacher said “No, it is because they are congruent, and that is what is obvious, Mr. Lifton.” I realized at that moment, that nothing is obvious unless we all agree on the subject matter, the meaning of terms, and the rules of logic.

 

Without further ado then, I give you the Magic World of rare metals-themed investing (drumroll, please and a cloud of non-toxic, non-irritating smoke – this type of smoke is called steam by the way; it is the visible output from nuclear reactors, for example, and is often mistaken for pollution…)

The June 19, 2010, Wall Street Journal had on the first page of its regular section called “Money & Investing”, a story I have been waiting for that I thought would come sooner, entitled “lithium ETF Aims to Rev Obscure Part of the Market”.

 

Battery Grade Lithium Stock Pick Of Warren Buffett

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Back In sept 2008 Warren Buffett shocked the entire market and wall street when he invested $250,000,000 in some Asian lithium-ion electric car company.

The main reason all investors and market concourse alike were so messed up over this, was because of all people Warren Buffett was breaking his own sacred rules of investing, Which is to never invest into something you do not FULLY understand.

He admitted that he doesn’t know a thing about electric cars.

 

So here is exactly why he pulled out his wallet.

 

Like I said, he knew that the electric car industry would be the main users of lithium-ion batteries, and a car would need a lot of them.

 

 

Instead, we’re bullish on the commodity that is vital to the battery technology that’ll be used in electric cars: lithium.

Doesn’t that make sense?  Why invest in an engine, when you can invest in what the engine gets its power from.  SMART AH!

The play specifically, is a tiny mining outfit that currently trades for around $1.00 a share.

Today there are many lithium stocks out there that will never be able to produce battery grade lithium.  This specific lithium stock has the best battery grade lithium in North America.

Learn all about this lithium stock and why it’s set to skyrocket in our new report The Best Way To Profit from the Lithium Bull Market, by signing up below.

So what is standard battery grade lithium (SBGL)? SBGL is a lithium carbonate manufactured for solid ion conductors and monocrystals used in the electronics industry. This carbonate is a source of a raw material for the production of cathode material used in lithium ion batteries (lithium cobalt oxide, lithium manganese oxide).

Please Visit 3v Lithium Battery For The Best Quality Lithium Batteries On The Market

 

Here are a few lithium stocks you can make tones of doe on rite now

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Why Lithium Mining Stocks Are The Hottest Investments suited Now View the full LI chart at Wikinvest Lithium One Inc (LI 1.32 ↓4.35%) shares experienced a astounding gain of 1,745% in a period of just 8 months.

Rodinia Minerals shares experienced a gain of 1,500% in the same period of 8 months. Canada Lithium Corp (CLQ 0.51 ↑3.03%) View the full CLQ chart at Wikinvest experienced a gain of 888% in the same period. FOR IMMEDIATE RELEASE PR Log (Press Release) – Apr 06, 2010 –  The intact globe is having raise up with the current oil prices . The end of oil as the inexpensive source of Energy Department is close. In the summer of 2008, crude oil prices had almost reached $150 per barrel before the bubble burst and the orbicular economy went into a recession. Right now, oil prices are not high but as the global economy heats up and starts expanding again, crude oil prices will again Eruca vesicaria sativa. This time it is cosmos predicted that crude oil prices are going to reach almost $200 per barrel. What this means is that the days of oil as a cheap source of energy are almost over . The world is frantically flavour for an option source of energy.

Do you know this that Lithium is being named the new oil? Its pretty clear to me that lithium-li-ion batteries are the future.  The only other competition is nickel-ni batteries which i think suck anyway.   The NY Times is locution that their will be a 40% increase in the global lithium demand by 2014, time to get a lithium mine ah?  It has been estimated that the future superior general mart for rechargeable lithium batteries will grow to $4 billion a year. Now whoever is going to invest in lithium stocks right now is going to reap huge rewards inside the next few years. Let’s take a look at the statistics. Lithium One Inc shares experienced a staggering gain of 1,745% in a period of just 8 months.

Rodinia Minerals shares experienced a gain of 1,500% in the same period of 8 months. Canada Lithium Corp experienced a gain of 888% in the same period. Now as a savvy investor if you had just invested $11,000 in the shares of Lithium One Inc in December 2008, you would have turned that $11,000 into $203,000 after ogdoad months. You might have disoriented this chance to get rich. But still you have a chance to get rich with the Lithium Mining Stocks as there are not many companies in this sector of the market. As you saw above, many of the early entrants to this hottest market sector have made huge gains in a matter of eight months. What you need is a new inaugural that is unnoticed by the Wall Street and the institutional investors but has the potential to skyrocket in the next few months. There are a few startups that have stocks as low as $1 that could soar as high as $10 by the end of this year. This might be the best time to invest in them.