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(B)(N) Extreme Economics – Lithium World

February 24, 2018
US Lithium Golman Sachs

Lithium Lite – No assets, No inventory, No income.

Drama. Lithium (Li) has been dubbed the “white petroleum” because it can be used to make better batteries and it’s reusable. That’s a compelling idea and the investment mavens on Wall Street have jumped on it to save themselves if not the World.

Only five companies produce almost all of the lithium that is currently needed for cell phones, laptops, EV cars, homes, and several other long-standing industrial and medical applications, and the supply far exceeds the demand for it; the current price is about $17,000 per metric tonne which is about 3× the price of copper and less than tin ($19, 000 per metric tonne).

We’ve called the producers the “Hard Core Lithium” and the rest, over twenty companies in the Wall Street float and fancy, are the “Lithium Lite” because they have a rented office, a boardroom with rented furniture, a good story on a website, and an investment IPO manager, and they don’t have any assets, net worth, mines, salt flats, inventories, or revenues to trouble them but they do have you, the itinerant investor, charged-up to buy what they’re selling – and it isn’t lithium.

Lithium Lite

Exhibit 1 (B)(N) Lithium Lite - ROE

Exhibit 1: Lithium Lite – (B)-Class Portfolio – Cash Flow Summary

Hard Core Lithium

Exhibit 2 (B)(N) Hard Core Lithium - Fundamentals

Exhibit 2: Hard Core Lithium – The Fundamentals

Exhbit 3 (B)(N) Hard Core Lithium - Cash Flow Summary

Exhibit 3: Hard Core Lithium – (B)-Class Portfolio – Cash Flow Summary

For more information on real “risk management” in modern times and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary and “(P&I) Dividend Risk and Dividend Yield“, and our recent Posts “(P&I) The Profit Box” and “(P&I) The Process – In The Beginning“; and we’ve also profiled hundreds of companies in these Posts and the Search Box (upper right) might help you to find what you’re looking for, such as “(B)(N) TLM Talisman Energy Incorporated” or “(B)(N) ATHN AthenaHealth Incorporated” or “(B)(N) PETM PetSmart Incorporated“, to name just a few.

And for more applications of these concepts please see our Posts which rely on the Theory of the Firm developed by the author (Goetze 2006) which calibrates The Process to the units of the balance sheet and demonstrates the price of risk as the solution to a Nash Equilibrium between “risk-seeking” and “risk-averse” investors within the demonstrated societal norms of risk aversion and bargaining practice. And for more on The Process, please see our Posts The Food Chain and The Process End-Of-Process.

And for more on what risk averse investing has done for us this year, please see our recent Posts on “(P&I) The Easy (EC) Theory of the Capital Markets” or “(B)(N) The Easy (EC) Theory of the S&P 500“, and the past, The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class actionLa Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in AmericaBig OilShopping in America or Banking in America, to name just a few.


We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

The Perpetual Bond
Alpha-smart with 100% Capital Safety and 100% Liquidity
With No Fees and No Loads on Capital

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Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”). The Canada Pension Bond®™, The Medina Bond®™, The Barometer®™, the Free Market Yield®™ and Extreme Economics®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.

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