“‘Hard Luck’ Scheele’s Discovery Could Quadruple Your Money”

By Travis Johnson, Stock Gumshoe, August 31, 2009

Here’s how today’s ad opens:

“The biggest opportunity of the new world economy…

“‘Hard Luck’ Scheele’s Discovery Could Quadruple Your Money by July 14, 2010

“Every country in the developing world needs this 231-year-old discovery, but…

“Only 10 companies in the world have it…

“Only 3 of them are pure plays…

“Only ONE can actually deliver

“Turning every one of your dollars into four by this time next year!”

This is a fascinating story that I wasn’t aware of — the historical part, at least … apparently there was a German scientist named Carl (or Karl) Scheele who discovered at least one critical element for the modern industrial economy way back in the 18th Century.

He discovered a bunch of elements, apparently, but this one is a key for the modern economy, and the ad tells us that Chris Mayer, who edits a big newsletter called Capital and Crisis, can tell us all about the company that’s the best play on this particular element. Of course, he won’t reveal this spectacular idea for the subscribers to his “regular” newsletter, or to us poor souls who subscribe to nothing … for the answer you’ve got to pony up for Mayer’s Special Situations, his newsletter that focuses on, well, special situations, smaller cap stocks, and charging you more money …. to keep out the riffraff, one assumes.

Or, of course, you can just settle in for some more of your favorite Gumshoe’s windbagging … we’ll get at that answer somehow.

The part that’s interesting, in an ironic twist from our potential riches, is that this Carl Scheele fella didn’t profit at all from his ideas and discoveries — that’s why he got the “hard luck” title from Isaac Asimov, and there was quite a bit in the ad about him blowing up his lab, and discovering elements that were announced and trumpeted by other scientists before he could claim credit.

So … we know that this is about a particular element. What do they tell us about that element? We get a number of clues …

“So what exactly did Scheele discover in his humble lab some 231 years ago?

“One ingredient that is crucial — and required by law — to develop every one of today’s new and improving technologies, energies and infrastructures.

“With it, steel can be made to withstand extremely high temperatures.

“Without melting, expanding or breaking down.

“And not even titanium can match its strength against high pressure and corrosion.

“It’s no wonder the entire world is hungry for it — tons of it….

The ad goes on to tease that Scheele’s discovery is essential for the new refineries that we’ll need for more ultra low sulfur diesel; for making thinner, lighter metal for more efficient cars … in essence, we’re told that this metal, in steel aloys like High Strength Steel (HSS), can make cars and trucks lighter, more durable, and more profitable for manufacturers, and increase fuel efficiency.

And there are other clues — this is used in a steel alloy that’s now used by nuclear plants for their cooling systems, making them last 26 years instead of the eight years they got out of the old copper alloys. And apparently every new nuclear plant that comes online will require 400,000 to 500,000 pounds of “Scheele’s discovery.”

Well, first of all we need to identify the element — Scheele had a hand in many element discoveries, and has been credited with possibly advancing the discoveries of others including oxygen, manganese, barium and tungsten … but it sounds like today’s “discovery” probably has to be molybdenum. Molybdenum is widely used to strengthen steel alloys, and, as a small aside, molybdenum mines (which mine the mineral molybdenite, source of most molybdenum) are also the only source of the rare mineral rhenium, which is also used in more specialized alloys and in jet engines.

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But we’ll assume that this is plain ‘ol molybdenum we’re talking about — and many readers have written in making the same assumption, so if I’m wrong I’m at least in good company. Molybdenum is part of two key catalysts in refining diesel fuel and removing sulfur, and a key alloy component for making high strength, light steel, which seems to be a perfect match for our tease.

And as Mayer also points out, molybdenum (he never used the name, of course) is a key corrosion resistant that’s used in alloys for anything that uses seawater — including the desalination plants that are expected to multiply rapidly as the global population demands more and more drinkable water.

Some more from the horse’s mouth:

“As global demand for Scheele’s discovery continues to increase, this tiny North American pure play could be raking in millions.

“Because they are the only pure play that can handle this kind of global demand.

“The capacity to deliver up to 34 million pounds in a single year without changing anything in their current operation.

“Plus, the ability to ramp up production by 50% in as little as four months.

“And that means incredible profits for you, if you get in right now.

“I reveal every last detail on this explosive company in my latest report, Scheele’s Discovery: Quadruple Your Money in the New World Economy.”

Well, I’m sure I won’t reveal every last detail here — but I can at least track down the company name for you, and get you started on your research … that is the Gumshoe Way, after all.

Here’s some more hoopla:

“So why is this opportunity so urgent?

“Because the credit crisis has slowed the world’s appetite for the stuff temporarily.

“And that’s not just good — that’s great.

“Because it gives you a shot at the deal of the century — one cheap, tiny company who has made Scheele’s discovery the focus of their entire business.

“They’re sitting on tons of it.

“Not just the product itself, but the means to get it, refine it, store it and distribute it to anywhere in the world.

“That means, as global demand drives the price of this important resource through the roof, this company stands to make a mint.


“Because, unlike every other company in the industry, this is the only North American ‘pure play’ that runs the whole operation from start to finish.”

So there’s a small pure play molybdenum miner in North American, one that can increase production by 50% in as li