Could you please take a look at Alix Resources?
Thanks for the assignment. This will be the first time that I audit the charts for Alix Resources Corp. (AIX TSXV). The company is a junior exploration company hoping to catch a ride on the anticipated jump in demand for lithium.
The company has three projects on the go. The Jackpot lithium project near Thunder Bay, Ontario and the other two in Sonora, Mexico. The market capitalization of AIX is $2.76 million while the average daily volume over the last three months is 460,564 shares putting this one in the speculative investment file.
An inspection of the charts will help inform my opinion of this stock.
The three- year chart indicates that we are dealing with a company that has fallen aggressively since 2014 and touched a 52-week low at $0.04. The shares caught a lift to their 52- week high of $0.10 in April of 2016 but have since pulled back.
The six-month chart pulls into focus the choppy trading that makes me wonder about the liquidity issues with a stock like this. The increased volume in April was a the results of news on agreements concerning joint ventures and property acquisitions. What this tells me is that as the press releases hit the wires it drives excitement and stokes buying.
AIX is a textbook example of a speculative investment. There is hope concerning future outcomes but little in the way of activity. The company raises working capital through private placements which it applies to field operations and overhead. If you are bound and determined to chase this one make sure to acknowledge that you have to be on the case relentlessly. Trading Profits are available but not for long periods of time.
Next time I’ll re-evaluate the case for Algonquin Power & Utilities Corp. (AQN TSX) for Peter.
Make it a profitable day and happy capitalism!