10 Stocks Investors Are Dumping

5. Lithium Americas Corp. (NYSE:LAC)

Lithium Americas fell by 6.53 percent on Monday after touching a new 52-week high, as investors took path from an investment firm’s “sell” recommendation for its stock.

In intra-day trading, Lithium Americas Corp. (NYSE:LAC) soared to its highest price of $9.48 before giving up gains to end the day at $8.45 apiece.

This followed Scotiabank’s market note, giving the company a “sell” recommendation, saying that the stock can no longer support the valuation after skyrocketing by 200 percent over the past two weeks alone.

“We failed to appreciate how a heated bull market would interpret [President Donald] Trump’s magic touch, on a thematic commodity starving for attention… despite the magic touch being dilutive to shareholders,” Scotiabank said.

“Perhaps, investors believe the DoE (Department of Energy) will backstop delays/cost overruns – i.e., LAC is now too important to fail.”

“We encourage investors to take profits on a remarkable run, and reload at lower levels.”

Last week, the US government announced that it was taking a 10 percent stake in the company and its Thacker Pass mine site in Nevada, as it aims to support the domestic production of lithium and reduce the country’s reliance on imports.