Year’s Best: “The second part of the $2.6 trillion secret …”

By Travis Johnson, Stock Gumshoe, December 23, 2007

During this final week of the year when I’m unlikely to get to any in depth analysis or new sleuthing jobs, I’ll be sharing some reruns for you: These are mostly teasers that were active back in the Spring and have had a chance to advance more than 100% since then, and I’ll be running through them in order. Some of them are still being sent out, so they might look familiar.

The stock that was teased here by Greg McCoach originally hit the Gumshoe back at the end of February, and at a few high points this year it has been up more than 200%, though those of you who first discovered the Gumshoe more recently, in the Summer or Fall of this year, may not have heard of this one yet. Today, it’s still atop the Gumshoe leaderboard with a return of about 175% to date. Not bad for ten months, though it’s far less than the return McCoach has predicted for longer term holders. The following is the original writeup I did when I sniffed this one out, unedited for your reading pleasure.

Many of you read my post on “Lake Superior’s $2.6 Trillion Secret” — it’s been one of the most popular posts on this young site. In it I disclosed that one of the companies teased, the easier one to figure out, was PolyMet Mining … but I didn’t put in enough time to track down the second company, the smaller one that Greg McCoach thought was just about to hit the accelarator.

Well, thanks to several persistent readers the case has been cracked! I had three different readers send in the same company as a solution for this puzzler, so I double checked the facts, and I think they’re right.

Remember, if you will, the teaser:

Here’s how get in on the ground floor of another opportunity like the one that’s already gained 11,066% (that other one was PolyMet — which he still predicted would triple again).

So what clues did we have about this second company that might be the next Polymet?

The property is bigger.

The concentration of metals in the soil is much greater in their plot.

They’ve only turned in a few drill results.

“… these two tiny companies [are] sitting on the world’s largest deposit of copper, nickel, gold, platinum and palladium.”

And to sum up, from the ad’s description of this company:

“The same opportunity is unfolding all over again for a brand new company that just went public in October to take advantage of Lake Superior’s $2.6 trillion secret. Only this time, for a few fast-moving investors just like you, the gains could be twice the size – and come twice as fast. The company controls 2,648 acres in the region, or about 4.14 square miles.”

I can’t answer the real question here — which is, “will this company really go up 11,000% like PolyMet did”

But thanks to my intrepid readers, I can answer the Stock Gumshoe’s favorite question: “What’s this company?”

This second, smaller company that came public last fall and holds some potentially valuable mining land near Lake Superior is …

Duluth Metals Limited (DM on the TSX, DULMF.PK on the pink sheets for US-only investors).

A quick visit to the home page will confirm that the clues match — including an October IPO — but it won’t tell you whether this very early stage mining company will actually make it big or not. As speculative as PolyMet is, this one appears to be even more so … and there are all the standard issues for investors, like lots of outstanding warrants, uncertainty about permits and environmental reviews, etc., so don’t say I didn’t warn you. Good luck in your research following up on this one, and let us know if you find anything else interesting about the company.

Oh, and as a freebie that someone already noted in one of the comments on a previous post (and I’ve received in a few emails), Greg McCoach also touted a special report on China’s #1 Gold Play that has already doubled investors’ money — according to my readers, and I haven’t looked into this one even a little bit, that gold company is Jinshan Gold Mines Inc. (JIN on the TSX), so take that as your special, unresearched bonus.

Thanks to all the readers who sent in the clues to help unearth this and other companies — the more help the Stock Gumshoe gets, the happier he is!