If Ioneer wasn’t enough of a speculative idea among lithium stocks to buy, then American Lithium(NASDAQ:AMLI) would be the next step higher on the speculation spectrum. And I’m not entirely sure if there are any more steps higher. Priced at $2.12, AMLI seems a more “reasonable” market idea. However, you only need to look at its five-year chart to understand the dangers.
Since skyrocketing from the doldrums of 2020, AMLI launched into the stratosphere. However, because of its incredibly choppy price action, it’s difficult to say if AMLI reached a baseline of support. Should a corrective cycle materialize, the subsequent panicking could see shares slip below the $1 level.
Fortunately, American Lithium enjoys a cash-rich balance sheet relative to its debt load. But we’re also talking about yet another pre-revenue business. Should the marketing literature that management pumps out not come true, AMLI could implode, simple as that. Surprisingly, though, we have another unanimous strong buy rating. Here, analysts target a price of $5.41, implying over 155% upside potential.
Since skyrocketing from the doldrums of 2020, AMLI launched into the stratosphere. However, because of its incredibly choppy price action, it’s difficult to say if AMLI reached a baseline of support. Should a corrective cycle materialize, the subsequent panicking could see shares slip below the $1 level.
Fortunately, American Lithium enjoys a cash-rich balance sheet relative to its debt load. But we’re also talking about yet another pre-revenue business. Should the marketing literature that management pumps out not come true, AMLI could implode, simple as that. Surprisingly, though, we have another unanimous strong buy rating. Here, analysts target a price of $5.41, implying over 155% upside potential.
