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

By Travis Johnson, Stock Gumshoe, April 29, 2013

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….

Are you getting our free Daily Update
"reveal" emails? If not,
just click here...


“… 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.


Irregulars Quick Take

Paid members get a quick summary of the stocks teased and our thoughts here. Join as a Stock Gumshoe Irregular today (already a member? Log in)
guest

12345

This site uses Akismet to reduce spam. Learn how your comment data is processed.

39 Comments
Inline Feedbacks
View all comments
Harold
7 years ago

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 sure you get your money down on that horse now, so you can be one of the first to bet that this horse will be the winner? Don’t we pay for that info, or is that reserved for the folks that want to spend $5000 a year on their newsletter? It’s getting way out of hand and
I’m getting a little tired of coming into the final stretch before even knowing that the starting gate had opened!

Add a Topic
443
Add a Topic
2576
Add a Topic
372
Bob
Bob
7 years ago

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.

Add a Topic
2776
Add a Topic
2576
Jimmy
Jimmy
7 years ago

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

Leblon
Leblon
7 years ago

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 Graphite? Was it a big tease at the time?

Add a Topic
2576
Add a Topic
2575
Add a Topic
2575
Leblon
Leblon
7 years ago

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??

Add a Topic
5971
Ispy
7 years ago

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

What’s Hodge’s track record like?

👍 18
drlinks
7 years ago

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 months. Then REPEAT. Don’t have any major expectations for these $.60-$1.40 companies to bust out for at least 3 years. But by hedging your bets amongst Canada and Sweden’s Best, a GRAND PAYOUT is LIKELY… AGIN-American Graphene has only two plays (mines), one in Alabama and one in Oregon, so it’s IMO, definitely not worth the lofty price valuation of $2.00 or $1.90….

Add a Topic
2487
Add a Topic
2575
Add a Topic
2575
👍 31
Alan Harris
Alan Harris
7 years ago

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 is a long way off. And when it comes, (like RARE earths) we will find graphite aint so rare.

Add a Topic
2575
Add a Topic
22
Add a Topic
2576