Amerilithium Corp. (OTC:AMEL) Promotion Bubble Expands

Promoting of Amerilithium Corp. (OTC:AMEL) continued yesterday, and not only managed to sustain the uptrend, but even caused this year’s top. Persistent speculative demand once again trusts words, but not facts.

Amerilithium Corp. held onto the usual promotional strategy, though Monday’s success could not be topped yesterday. The 4.65% rise seems, at first glance, quite moderate for a penny stock, compared to the previous 24.63% promoter-driven jump, but it was still sufficient to lead to this year’s peak of $1.80. The declining demand, reflected in a volume decrease, suggests, however, that the trend can soon reverse and a move down from the top could be the next step.

Yesterday’s promotion added another $30,000 to the solid promotions record of Amerilithium Corp. for this year. The aggressive promo attacks started at the beginning of the month, and since then the company has spent near $1,000,000 to enhance public awareness for their stock. Newsletters and press releases also flooded the market with a wide range of praising words with the purpose of distracting investors attention through an information overflow.

Some other relevant events were not that favorable and could have scratched Amerilithium Corp.’s recent glamor. An 8-k from yesterday announced that Matthew Worrall, a former officer and current director of the company, has converted promissory notes into 600,000 shares of common stock. And if this does not sound like a considerable dilution of the currently 52.8 million shares outstanding, after the 8 for 1 split in February, another announcement from last week should be of greater concern. A financing agreement came out, pursuant to which, up to 10,000,000 shares will be issued to an investor in exchange for cash, meaning another 19% dilution.

Financial results filed two week ago show the company is in a continuing exploration stage since its formation in 2004, but does not intend to give up the hope for some profitable reserves in the near future:

• $0 revenues since inception
• Net loss up 99% to $82,765 over the last year
• $591 of cash the only item on the assets side

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