Who would think that an OTCBB-listed company could ever a bellwether for other companies in its industry?
That certainly appeared to be the case this week.
Lithium Exploration Group (OTCBB: LEXG) had everyone buzzing about lithium over the past week.
Shares of LEXG opened at $4.05 on Monday, and ran as high as $10.68 on Thursday, according to historical data on Yahoo Finance. LEXG had a nearly 800 percent run in the past month — fueled by a huge advertising budget and herd mentality. Shares rocketed from $1.20 on March 29, 2011 to a 52-week high of $10.68 a share on Thursday.
Other OTC-listed lithium companies experienced a heavy tailwind, as well. Lithium Corp. (OTCBB: LTUM), which opened at 19 cents on Wednesday, surged to a high of $1.35 on Thursday, and more than 3.7 million shares of American Lithium Minerals (OTCBB: AMLM) traded on Thursday. Shares of AMLM were up 120 percent between April 27th and April 28th.
The run-ups came to an abrupt end on Friday.
LEXG plunged more than 50 percent at mid-day. LTUM and AMLM followed suit.
LTUM fell as much 54 percent at mid-day on Friday, and AMLM was down more than 20 percent, according to historical data from Yahoo Finance.
The biggest players in the space include: FMC Corporation (NYSE: FMC), and Rockwood Holdings (NYSE: ROC), neither of which have anywhere near the same volatility as the smaller companies.
On a more positive note, one of the companies featured in our mid-day update from Thursday, Orofino Gold Corp. (ORFG) saw gains of as much as 20 percent on Friday.
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