Whether it is a letter of intent, initial sample results or something else, it always works out fine for LI3 Energy, Inc (OTC:LIEG). Yesterday was particularly interesting in that matter, but the trend that seems to form indicates that LI3 has managed to find a way to gain the confidence of investors.
All it takes is to mention some intentional action that might take place in the future and traders rush for the stock. Yesterday was no exception. An announcement came out, covering an involvement of a third party for the company’s business in Chile and the stock price went more than 50% up. Quite a good deal, which might repeat again very soon. 
On the other hand, it is very questionable as to how exactly the company would achieve the targets it sets for the future. LI3 is an exploration-stage company, looking for properties offering lithium mining opportunities. It has four subsidiaries operating in South and North America, all sharing the vision and main line of business. The company’s history is not very long – up until 2009 LI3 had nothing to do with lithium whatsoever. So how exactly did it ever manage to acquire them and how exactly will it get to the point of revenues, is a sound mystery. Especially if one takes a closer look at the balance sheet. So far, the only thing that seems to increase in the SEC filings is the liabilities and the number of shares.Yet, investors do not care much about the above. The stock price is going up and the volume of shares exchanging hands is also increasing these days. The truth of the matter is that LI3 Energy is being offered a chance to provide an actual proof that the properties the company focuses on are indeed a lithium El Dorado.[BANNER]
But confidence, especially among investors, is hard to get and easy to lose. One wrong step and the crash on the market will begin, and last more than a few days. And this is the issue with LI3 – sometimes it seems that it takes steps where it is too dark and misty to see whether it would step on a gold bar or a mine.
