The company changed its name to ecobalt Solutions Inc. (ECS.T). Because of the recent price rise in cobalt, which is instrumental in the manufacture of electric car batteries, the stock has went nuts since the beginning of the year.
After the recent rise the stock is extremely over bought and due for a consolidation. I would sell the remaining shares as the company is a pure speculation and may never actually produce any cobalt. Selling now will yield a 417% profit since last April!
I am still excited about the cobalt price and I think it will be going higher. However, because cobalt is mostly produced as a byproduct of nickel and copper mining it is hard to find an actionable way to play the rise in the metals price.
I am going to play it by buying long term out of the money puts on Tesla. One of the reasons why is an article on the ecobalt site which I found very interesting. Another reason is the fanboy admiration for Elon Musk. It really bothers me and has to be a sign of too much optimism. Tesla simply does not make money building cars.
Now I know why Elon Musk was hanging around Trump Tower after the election. He is trying to make sure cobalt mined by child miners in the Congo is not regulated or designated as a conflict mineral. if so he is going to have a hard time producing all those Model 3's he has deposits for.