Last week, I put out a brief summary article on a lithium developer I have been following closely - ‘Lithium Chile’ (TSXV:LITH). At the time of writing, the stock was trading at $0.55. Since then, the stock jumped up to the $0.68 level, about a ~23% increase in just over a week. Not only that, but this price jump has been accompanied by some pretty decent volume to go with it. We haven’t seen any news since the article, but it definitely seems like something big is cooking behind the scenes. Will continue to keep a close eye on this one.
Another company I have been writing about recently is X1 Entertainment Group (CSE:XONE), formerly known as X1 Esports & Entertainment.
This particular stock has seen some wild volatility over the last few weeks, falling from around $0.30 all the way down to $0.09, and now hovering around the $0.12 level. The main reason for the drop is because of the escrow release that happened on Friday of last week - meaning there were a large amount of shares held in escrow since IPO that were released - and clearly some of those people decided to sell.
This doesn’t come as a surprise given that these funding rounds were done almost a year ago, and the market environment for gaming/esports company has changed quite a lot since then. In any case, if we look at the prices of previous funding rounds, we can see that the average cost of the released shares is around $0.15, thus, I would expect the stock to bounce back hard if it does fall below this level. As of this morning, the stock is sitting at around $0.12 per share.
Although the stock is down, it is certainly not out. The company has a really unique business model mixing organic and inorganic growth, still has cash in the bank, and is operating in an industry that is only expected to grow over the coming years.
So, for the long-term investor, there is a ton of value here, as well as for any traders who are looking for a high volatility play.