This tiny company holds the key to the U.S. supply of a strategic metal…
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How a looming supply shortage could launch this penny stock to $10… $12… even $18
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Dear Reader, As the economy has declined, the mining of this essential mineral has ground to a near halt. Big mistake! But if you’re an investor, this is one of the greatest opportunities for riches you’re ever going to find. Because one small, aggressive company is quietly working to corner the world’s largest market for this crucial metal. Best of all… it’s trading for pennies! The cobalt paradoxCobalt is one of the most important metals in next-generation manufacturing.
But it’s as a super alloy that we find its true value—in jet engine and gas turbine components, as well as products such as propeller blades. More to the moneymaking point, it’s also contained in both lithium and nickel rechargeable batteries. That means products from the cell phone in your pocket, to the hybrid car parked on your street, all the way up to the airplane you take for your next vacation depend on reliable supplies. That’s a lot of demand, you’ll agree. But here’s the thing: Right now, hardly anybody’s mining it. Low consumer demand led to diminishing suppliesAs the economic crisis wormed its way into industries across the globe, demand for cobalt softened. Less aircraft were ordered, less gas turbines required… particularly in China… and the market for this commodity crashed. One year ago, cobalt was priced over $50. Today it’s priced at around $16. You see, cobalt is found mostly in compounds, not in pure form. It’s typically retrieved from mining operations aimed at other metals like copper or nickel.
It just wasn’t cost-effective. But those rechargeable batteries for cell phones and iPods are still in high demand. Ask any teenager about his or her plans to upgrade their iPod. Inevitably, stockpiles everywhere are depleting rapidly. This couldn’t come at a worse time. Because we’re at the verge of truly… Electrifying advancements in automotive technologyGovernments are pushing green initiatives across the globe—both for environmental and political reasons. In pollution-ridden China, the pressure is on to reduce carbon emissions. And on a strategic level, just like in the United State and other nations, there’s a determined effort to reduce dependency on imported crude oil. The Chinese government and the country’s automotive industry see their chance to penetrate the potentially huge market of fully or partially electric vehicles.
Currently, China’s automotive market is second only to the United States. By 2030, it’s anticipated it will surpass the U.S. By then, the Chinese electric vehicle market could amount to $220 billion a year. Even as I write, the Chinese are building a factory that planners say could produce 20,000 electric cars annually. The top manufacturer of rechargeable batteries, Chinese BYD, is planning on producing a battery-run car by the end of this year. Bottom line: Demand for battery components like cobalt is going to soar over the next decade. Location, location, locationBut as I mentioned, cobalt is usually produced as a by-product of copper and nickel mining. Much of the world’s cobalt supply currently comes from mines in the African copper belt that runs through the Democratic Republic of Congo and Zambia. Not the most stable of regions. Even so, you know China will be moving in hard to secure future supplies. Right now, at about 20% of world output, the United States is the largest consumer of cobalt. It considers cobalt so crucial that it’s been labeled a “strategic metal”—one with little or no domestic supply that the government considers essential for national security. And that's exactly where this audacious little mining company comes in… The company I’ve found is about to open the only cobalt mine operation in the United States—in the entire Western Hemisphere, in fact—that will produce high purity super alloy grade cobalt metal. All permits, paperwork and red tape have just been finalized—and this tiny company recently pulled together over $8 million in private financing to get things started. Once operations come online in 2010, it will be the only super alloy grade cobalt mine-to-market outfit in the U.S. That’s exactly the point when current world
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Through our website and a daily email, TFN eNews, the team at TodaysFinancialNews.com looks to reveal to readers a unique and timely perspective on the markets and on our world. Hot Stock Confidential is the next step… the fruition of research and ideas—all designed to bring readers the safest recommendations with the most profit potential. With 19 winners in the first 18 weeks of 2009, the editors of Hot Stock Confidential are right on track. To allow Members to act at just the right moment, Hot Stock Confidential is entirely electronic—recommendations come directly to your email inbox and are posted immediately on the service’s website. The TFN Team includes Laura Cadden, Andrew Snyder, and executive publisher J. Christoph Amberger. |
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NOW is the time to buy this tiny stock.
Inventories are way down.
As the economy recovers, industry picks up, automakers ramp up their hybrid and electric cars, and people again load themselves up with tiny electronic items they can no longer survive without, cobalt will again be HUGE.
And this tiny company’s mine will come online just in time.
So please, act now before this stock skyrockets.
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Hot Stock Confidential
April 2009
P.S. Our next Hot Stock Pick is coming out this Thursday. Don’t lose out—act now!