Using the Gulf rig disaster Amerilithium Corp. (OTC:AMEL
, AMEL message board
) tries to lure people into buying their stock, foreshadowing the possible ban on offshore drilling.
Advertisement emails are hitting people's inboxes describing the situation and pointing to the alternative energy stocks on the rise. One thing the authors fail to mention is that AMEL is not on top of lithium plays out there.
The oil industry will in fact feel the effect if offshore drilling is made more difficult, but it wont help Amerilithium to get anywhere with their poor financial position and questionable claims they recently purchased by issuing restricted shares.
Amerilithium stock price has been on a stable downtrend from May. That doesn't mean the stock has become underpriced but only points to the fact this company has nothing valuable to offer. Even if their newly acquired mineral claims are worth the price, the management will still have to come up with funding to cover the development costs.
Some paid promoters like Eric Dany even goes on to suggest 12 months AMEL price target of $7.65, which would put their market cap at $443 million. However you look at this it's unrealistic for a company with $6 million in assets to successfully grow to such valuation in just one year.