No news, no promotions, yet incredible results on the stock market – this is American Lithium Minerals Inc (OTC:AMLM) in the last few days. On one hand, the last two trading sessions are exceptional compared to the stock performance since the beginning of the year. On the other, there is a pattern to which this company adjusted, a pattern which affected many similar enterprises. 
Almost a 100% increase in the price on Thursday, followed by a sharp slump on Friday, the last session of the week closing at $0.38 per share. The volumes traded were also not the usual 50-100k. So, traders might ask themselves – how is it possible that a company announcement for secured financing could have almost zero effect on the stock market, but without any immediate catalyst a hype could form all of a sudden, creating this extreme volatility? Yet, what they ought to ask themselves is not what is happening with AMLM, but what is happening with all OTC companies that focus their efforts on lithium-based products.
What happened to AMLM happened to LTUM as well. A shocking increase on the one day, followed by a sharp decline on the other. This, however, is nothing compared to what another lithium-focused company did last month – LEXG had a share price increase from $0.1 to $10.5 per share. Yet, similar to AMLM and LTUM, it also shares a pattern of sharp decline presently. It seems that more and more penny stock companies are coming to life, even though they don`t have an actual product to offer. [BANNER]
In the case of American Lithium Mineral, as mentioned in its last 10-Q statement, efforts so far were focused on securing and establishing a new business, so principal operations have not commenced. As with most penny stocks engaged in a certain industry, there are always a few winners and a whole lot of losers. Two aspects should be considered – on one hand, the possible benefits of using lithium for medical purposes as expressed in a recent article. On the other, the impact on the automobile industry, which slowly turns to producing vehicles with alternative power supply, lithium being used for car batteries of electric cars.
Yet, at the present moment AMLM offers uncertainty more than anything else. There is a long way to go between this stock starts complying with industry patterns and gets affected solely by the company’s development and revenue announcements.
