What is the “Sixth Element” Fortune-Maker to Buy Before May 31st?

By Travis Johnson, Stock Gumshoe, April 29, 2013

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Nick Hodge is out with a new promo that’s catching the attention of Gumshoe readers — it’s all about the “sixth element” and a company with a massive stockpile of it that should make us all rich.

I don’t want to spoil the whole surprise, of course — what fun would that be? — but yes, we can cut to the chase just a little bit and say that this is indeed another graphene/graphite tease.

Graphite, as you’re probably know, is a form of carbon that’s used for pencil lead, for lubrication, in lithium-ion batteries, and in steel furnaces, among other things. And the high quality, large flake variety of graphite is a raw ingredient that can be used to make graphene.

Graphene is a nanomaterial, essentially it’s a sheet of graphite that’s only one atom thick — and it is conductive, transparent, and extraordinarily strong and flexible. So it really does fit the bill as a “wonder material” that could be a building block of the next wave of incredible advancements — it’s been compare to plastic and the silicon chip as regards the potential impact it might have across all parts of the economy. So yes, it’s big … but it’s new, and no one’s quite sure how to cost-effectively make it in large quantities yet, or what applications will actually turn out to be the critical consumers of graphene.

I’ve been quite skeptical of the graphite exploration companies as they’ve been teased over the past couple years — the story is compared to the “rare earths” story, because most graphite is produced by China (though they don’t have quite as much of a lock on it as they do on rare earths), and most of the stocks experienced a real boom and bust period as they were touted for their graphene potential and collapsed with faltering steel demand and/or the slowdown in investor interest when the newsletters backed off on promoting the graphite/graphene story for a little while.

Most of the “real” graphite exploration stocks — those with a real, at least partly defined asset — peaked out in early 2012 and have come down hard since then, including several that were actively teased by a handful of newsletters (Northern Graphite (NGC.V, NGPHF), Flinders Resources (FDR.V, FLNXF) and Focus Graphite (FMS.V, FCSMF). And most of those assets were either long-known deposits or existing, shuttered mines — projects that had been delayed or closed because of low graphite prices in years past.

Here’s how Nick Hodge introduces us to his latest graphite “story stock”:

“The ‘Sixth Element’

“This ‘inside info’ from a world-renowned explorer could be worth $484,000 to you…

“but only if you heed this advice before May 31st….

“… a call I recently got was different.

“It was from a man with noticeable conviction in his voice — a man I’d never talked to before.

“He told me he’d tracked me down because he had a story to tell…

“About a massive $8.6 billion plus ‘wonder mineral’ discovery in the wilds of Alaska — and the sub-50-cent company that uncovered it.

“It’s a mineral, he said, that many call the ‘Sixth Element’ because of its placement on the periodic table.

“I was intrigued, of course. I’m always on the lookout for early advantage opportunities for my readers.

“And as I quickly learned, this one has the potential to be an enormous moneymaker for quick-moving investors.

“Fact is, it’s extremely rare to come across an exploration company with a market cap in the tens of millions that is sitting on a discovery potentially worth over $8.6 billion.”

“Potentially” is a important word there, of course — much different than “currently.” Discoveries are great, but before you fill your head with the big numbers you get from multiplying “price per tone” by the “potential” size of the resource there’s a long row to hoe in exploring and defining a resource to become more certain about what’s there … and, more importantly still, to contemplate whether the “potential” mine can be permitted and built, how much it will cost, how and where the ore will be refined to become sellable, and how you can get that refined product to the end markets who will pay for it.

Most of you know all that already, of course — ore is worth more on a ship bound for China than it is a couple thousand feet underground in a remote part of the world — but I just wanted to point out that the big numbers that newsletters almost all toss around in their teasers are based on the somewhat justifiable but simplistic math of “this is how much stuff might be underground” multiplied by “this is what people are paying for the refined version of this mineral right now.”

The company Hodge is teasing is apparently priced under 50 cents (though, given this big teaser campaign, it might be over that price by the time you read this — I’m typing on a airplane at 7am on Monday so haven’t seen the opening price yet), and he adds these extra clues and enticements from his secretive meeting with the man who tipped him to this stock:

“He showed me a government-approved resource estimate quantifying how much of the mineral the company controlled…

“And if it’s as accurate as it’s supposed to be, the enormous $8.6 billion value of this mineral resource discovery could send this company’s stock soaring 2,420% — or more.

“This isn’t just some pie-in-the-sky prediction. It’s based on estimates from a well-respected international certification service.

“Keep in mind, this is just the value of the resource in the ground.

“It’s really an early-stage bet.

“Other companies that have a similar “sixth element” resource are being valued at $55 per tonne.

“And this company possesses over 6.2 million tonnes — meaning it should be valued at over $340 million. With that kind of valuation, you get a current estimated per share value of $3.78 for this explosive Canadian exploration company….

“Exploration on the Alaskan property where the discovery was made began in the spring of 2012 with a geophysical survey.

“This was followed by surface sampling (totaling 591 rock grab samples and 32 channel samples) and an 18-hole diamond drill program…

“The results of this program led to the initial resource estimate of over six million tonnes of graphite, worth over $8.6 billion in today’s market.

“For early-in investors, this record-breaking North American graphite discovery could make them powerful gains of 2,420% or more…

“Ultimately, this company wants to sell its huge graphite resource to a bigger mining outfit or an end user at a massive profit — giving you an opportunity for spectacular gains from a future buyout.”

So … who is Hodge teasing? Well, he’d like your $499 before he’ll tell you, but we toss all those clues into the Mighty, Mighty Thinkolator and we can tell you, for the low low price of “free” that this is almost certainly … Graphite One (GPH in Canada on the Venture Exchange, GPHOF on the pink sheets in the US).

The company is teensy, and if we look at the past experience of little sub-$100 million market cap companies that have been teased by the Angel Investing folks it’s easy to see how the price could spike based on both Hodge’s attention and, because we’re sharing it more widely for free here, on the attention of yours truly. So please please keep in mind that I have no idea what this company should be worth … and if it spikes based on this extra attention, it could easily give up the gains as quickly as they’re made. I expect that Hodge’s copywriter is anticipating that attention in calling it a “less than 50 cents” stock — right now it’s also less than 25 cents (the stock closed at 21 cents on Friday, which was the culmination of a 50% gain during the week — not that unusual for a teensy stock with a market cap of only $25 million and pretty low trading volume, but it does indicate that someone, probably Hodge’s subscribers, took a lot of interest late last week).

I have no particular expertise at evaluating mineral resources or picking early-stage mining stocks, but you can see the press release that accompanied their release of their maiden NI 43-101 Resource Estimate here — it does indeed estimate an inferred resource of over six million tonnes of graphite at a 3% cutoff grade, and the deposit is apparently still open in more than one direction so may well be larger.

The May 31st bit is just that Hodge is going to host a conference call for subscribers on that date, with his “secret” tipster and some other experts on the call — so I don’t know if there will be real news from the company in the interim, but that does give at least some indication that the Early Advantage folks will be pressing this story for at least a few weeks. That doesn’t guarantee a higher price on May 31, and I don’t know what kind of interim price target or “buy under” price Hodge might be providing for his subscribers, but if they keep pushing this stock for a month I imagine it will go higher for at least a little while. But do look at those charts of Northern Graphite or Flinders Resources or Focus Graphite to see what happens when interest in a graphite explorer dries up (and those companies are all pretty far ahead of Graphite One so far).

And my plane’s about to descend, which means my WiFi access will be cut off soon … so I’ll leave it to you to discuss the merits of Graphite One amongst yourselves — it’s in a mining-friendly state, it’s got quite a lot of attention from penny stock and resource investing folks, and it’s quite promo-savvy — even their press releases read like stock teaser stories. So is it worth your speculative cash? Let us know what you think with a comment below.

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39 Comments on "What is the “Sixth Element” Fortune-Maker to Buy Before May 31st?"

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Max
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Max
April 29, 2013 10:15 am

Wrong company

it’s actually ucore UURAF.

Lauren Skalamera
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Lauren Skalamera
April 29, 2013 10:49 am

Several months ago my curiosity got the best of me and I became a subscriber to “Stansbury” Investment Resources.Each time I open an article of interest It has become increasingly annoying to be subjected to a lengthy soloicitation. I will not be renewing my subscription with Stansbury. I am looking for objective and valuable insights not solicitations. How are you differnet ?

herbalix
Irregular
99
April 30, 2013 6:35 am

If you follow the Gumshoe for a while you will find out for yourself how different he is! If you risk a few dollars and become an Irregular, you will find out that those few dollars are the best investment that you have made so far.
Good Luck and have fun!

Glen F.
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Glen F.
April 30, 2013 7:53 pm

I came to the same conclusion about Stansbury.

bill
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bill
April 29, 2013 12:11 pm

He’s different because he figures out what the company is WITHOUT having to pay $99 to $499 or more to find out from Stansberry or some other similar company. It’s up to you if you want to invest in it. I also subscribed to Stansberry for a while. The majority of their ‘hyped up choices’may go up quickly, then crash a quiet death.

Travis Johnson is one of the good guys in this business!

morrisaj
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morrisaj
April 29, 2013 8:33 pm

It would be wise and much more economically to …”go with Travis”.
M-j

Alan Harris
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Alan Harris
May 27, 2013 8:33 am

Also, Gumshoe gives a full money back guarantee for its free pages…..you can hit the unsubscribe anytime!!

baygreen
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32
April 29, 2013 12:37 pm
I would be on Bills side , I think you will find Travis and his reinforcement the thinkolater just might save you some pennies or should I say minerals that you can out to use without a tease price. I never saw a 100% always guaranteed teaser clause so I guess that might help your how you different question. Maybe there is a word for that like an individual giving there thoughts. That was great we got to symbols and one cost somebody some extra money and time. Irregulars throw some good individual words out there to, that might be… Read more »
misterht01
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misterht01
April 29, 2013 12:49 pm

Somebody under estimated the Mighty, Mighty Thinkolator? Wow..a rookie probably..

Gordon Thorne
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Gordon Thorne
April 29, 2013 3:25 pm
Interesting reading the responses. I’ve tried several different investment newsletters, including Stansbury, and what they all have in common is to entice you with a low price newsletter offer, of say, $49 to $99 per year, then bombard you with emails, each one teasing something new that will make you rich, if you will only subscribe to another one of their newsletters. If you subscribe to three of their newsletters, they’ll have information you must have which is only available in yet another newsletter. And Stansbury is one of the worst, if not the worst. I complained so much to… Read more »
Malcolm
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Malcolm
April 29, 2013 5:09 pm

If you want an “up and running” graphite producer , not explorer you need to look at Stratmin on the Aim market in London . Hugely undervalued

Bob
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Bob
April 29, 2013 6:14 pm

Stratmin share price has recently collapsed from .74 pence to .30 pence.

Bob
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Bob
April 29, 2013 5:50 pm
CNN: (Interview, 4/29/13) How long will it take for graphene to come to market? TP (Tomas Palacios, head of MIT Graphene Lab): It depends on the specific application. I believe that the use of graphene in solar cells, displays and so on is probably going to be in the marketplace in a couple of years. More complex applications such as computers or cell phones will probably take longer, maybe within five and ten years. CNN: What challenges remain for researchers? TP: One important challenge facing graphene is the way the material is developed. Graphene was isolated for the first time… Read more »
sam
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sam
April 29, 2013 7:00 pm

I think, it would be appreciated and well understood, if you convert one atom into fraction of an inch or meter. Probably, it is at your finger tip.

hipockets
Irregular
998
April 30, 2013 1:14 am

You piqued my curiosity -so I googled it.

According to http://hyperphysics.phy-astr.gsu.edu/hbase/particles/atomsiz.html, most atoms have a diameter of about 3 nanometers, which is equivalent to about 0.000000003 centimeters. Close enough for carpentry work. :>)

Allan Robinson
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April 29, 2013 7:26 pm

I back up Bill 100%. Travis gives you an in-depth analysis of the companies reviewed without the commercial hype from most of the newsletters – not to forget the price differential. All most of these teasers do is try to bamboozle you with bullshit in order to try to hook you on a sale. Once they get your credit card…watch out! No to mention bombard you after to satiation.

Andy J
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Andy J
April 29, 2013 7:27 pm

I bought Nick’s last graphite play about a year and a half ago, NGPHF at $2.45… Today is the first it poked its nose above $1 in many, many months… I’m down 58%, but something may be happening…??? or another of his, DNI Metals, down 92%… Put his stuff on a watch list and be prepared to follow it for years…

Rivka
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Rivka
April 29, 2013 9:35 pm
The problem with exploration companies is that the development of the mines can be delayed for ever by environmental assessments. I bought the stock of Polymet Mining Corp. (POM.TO) in October 2010 paid over $2.00, than it was predicted that in 2011 the mine will go into production, and this development is forever delayed and production still not in site. The stock is fluctuating up and down around $1.00. Even if Graphite is an important product however the environmentalists especially in Alaska are ruthless and would hold back any operation of any mine for as long as possible “to save… Read more »
Andy J
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Andy J
April 29, 2013 10:15 pm

Rivka provides very good advise… exploration, permiting and development can go on for years… and you will usually be under water while you wait.

who noze
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0
April 29, 2013 10:20 pm

im a holdernof stock of some of stansburys [skoursen etc picks anyone want a p-ennystock i mean 1cent

Viktor M
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0
April 29, 2013 11:41 pm
If the graphite industry could invent a ballpoint graphite pencil good enough to write circles around a standard ballpoint, then we could all get rich overnight as stampeding pencil hungry mobs would break open the doors of the local Walmart in a buying frenzy which would consume 90% of the world’s graphite production. The ballpoint graphite pencil (BGP) would have uses extending far beyond the scope of existing pencil technology. It could be used for lubricating mechanical wristwatches, clocks, locks and hinges. Engineers could doodle complex conductive circuits onto paper and other surfaces by virtue of the high conductivity graphite,… Read more »
peter moore
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0
April 30, 2013 7:43 am

Draphite in the coccer configuration is supposedly super strong but one need not depend on one thin sheet but likely 3 anyway but it is still strong and light so should be useful in airplanes and cars and be worth money.

whatch
Member
15
whatch
April 30, 2013 10:36 am
While graphite is widely used in many manufacturing processes, graphene I feel is too much in it’s infancy at this time to make a difference. I’m sure in time graphene will be a major component in the manufacturing of everything from electronic circuitry to possibly solar panels and more. Assuming that someone can cost effectively manufacture it for these applications. For me it’s just too boring and too long term of an investment to warrant my interest. I would be interested in what the think-o-later and Travis has to say about Sean Brodrick’s latest tease about the “Greatest Buying Opportunity… Read more »
bill
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bill
April 30, 2013 10:45 am

Viktor, Love your humor. Thanks. It put a smile in my day. b

Alan Harris
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Alan Harris
May 27, 2013 12:30 pm

Depends what you mean by war? Japan is determined to achieve inflation by ANY means. A 20% cheaper yen will make their product a lot cheaper, so encourage exports. China, Taiwan, Korea, GERMANY !! is not going to sit back (in the way Japan has for 20 years) and let Japan sell Lexus’ cheaper than Hyandia. So a currency ‘war’ is on the cards. When governments start wholesale manipulating the value of their paper fiat currencies, I want my money in something they cant devalue. Commodities !!

Brent
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Brent
April 30, 2013 6:01 pm

UCLA Prof making graphene components using a laser scribe writer. Utube video http://www.youtube.com/watch?v=_oEFwyoWKXo
Graphitic acid is the primary input which I believe is made with graphite oxide and a reducer (acid) not certain about the relationship between graphite oxide and graphene miners, but it appears that if its this easy to form components may see applications much sooner than would normally expect.

Felix
Guest
0
May 1, 2013 11:51 am
The issue with some of these stock newsletters is that they must try to have people invest in the companies in the hope of keeping the confidence in their shares and subsequently the prices up in order to get as much good alpha as possible. A year ago the three main graphite stocks such as Northern pretty much tripled. How lon this will last I don’t know – but it depends on how quickly you get out to cash in and where you invest thereafter, including re-entering the same stock at a lower price. Environmentalist who believe that graphene is… Read more »
Bruce Adams
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Bruce Adams
May 1, 2013 6:33 pm

I have been a subscriber to several of the Stansberry publications and have made tens of thousands on their recommendations! I tune out the marketing and stick to what is recommended by Porter, Steve Sjuggerud, and Dan Ferris. I do not believe you can et better advice. Stick closely to your trailing stops and buy their suggestions and you can make a LOT of money!
PS: Doc Eiffrig is another of their writers who is well worth the cost of his newsletter.

Tom
Guest
0
Tom
May 1, 2013 8:07 pm

Here’s a thought which worked for me. Assume you could invest in every company all the teasers recomend.(i.e. play the law of averages game). Take out the obvious losers. Watch the results for 2 years. Or even back test them. I ended up stuffing the money I might have spent into boring rock solid companies, and actually got a decent return.

Harold
Guest
0
May 3, 2013 6:55 pm
I don’t usually post, but after hearing you guys complain about Stansbury, I had to. I get so Sick of The BS that they send And the videos that you watch which is only words anyway. Theirs nothing to look at! It’s just to make you push the button at the end to subscribe. And then of course, while you’re at it, you might as well buy a couple of silver eagles! I like Stansbury, but I’m tired of paying for the extra postage! And this Graphene thing, maybe you guys/gals know, but wasn’t this supposed to be a make… Read more »
Bob
Guest
0
Bob
May 4, 2013 2:44 pm

There is one company that is trying to jv with a Euorpean co to develope 3d printing with graphene, the symbol is AGIN. Could be interesting……… if it works.

Jimmy
Guest
0
Jimmy
May 4, 2013 5:00 pm

By golly, Harold, I think you just took the Anguish Languish prize. Doesn’t anyone proofread their copy before hitting “SEND”?

Leblon
Guest
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Leblon
May 13, 2013 6:50 am
I’ve seen some video’s about graphene, the possibilities and I believe it will be a very important rare earth but agree with Wayne I guess its a bit to early…… At the moment I believe graphite is mainly used for batteries. Meanwhile I keep an close eye on the stocks Focus and NGC….as IMO they are probably the ones who might survive…..Whats your guys idea?? Is it worth pick them up at the current levels? What has caused the spike in 2011 and 2012 and why it died so easy? Is it due to the economic crises and demand for… Read more »
Leblon
Guest
0
Leblon
May 13, 2013 8:18 pm

Also there was some ‘good news’ announced on NGC and a new FS should be released soon…..Why the is the stock down 16% in last 2 days??

Ispy
Irregular
0
Ispy
May 25, 2013 12:44 pm

Hodge’s latest teaser has to do with KLH (sea snail blood).

What’s Hodge’s track record like?

drlinks
Member
23
May 27, 2013 4:05 am
Flnders (FLNXF) of Sweden is the closest to production. I am a big fan of both Focus (FCSMF) and Northern (NGPHF) Graphite, although Focus and Northern will take longer to get into production phase. Focus Graphite apparently has the highest grade flake of all three miners. I think a sage play on graphite, given it’s colossal implications for the future, is to load up on a 35% FCSMF, 35% NGPHF, and 30% FLNXF Triumvirate of the three BEST KNOWN Graphite MINERS out there, esp. while they’re cheap as hell and don’t bother looking at their price for @ least 12… Read more »
Alan Harris
Guest
0
Alan Harris
May 27, 2013 7:46 am
Graphite/graphene? Heres one for the watch list: Stratmin Global Resources PLC (LON:STGR). They’ve got the high quality flake graphite, got the transport etc in place, operate out of South Africa which is fairly stable. But they’re strapped for cash, the management have been sloppy and they’ve suffered shipment delays so theyre looking for/being approached by strategic partners. The SP has been heading south at an alarming rate. But they’ve got the goods, if someone can just despatch them. Personally, graphene seems like a commodity looking for a defined market. It may all happen one day, but I suspect that day… Read more »
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