Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyan Mailbag: Cobalt plays (?)


"There is no free lunch.... but this is close (if you can answer the question)"


Minyans: Our goal at the Ville is to provoke thought and discussion with the "Big Idea" that the collective knowledge of the community is greater than that of anyone on their own.

Today one of my loyal e-mailers stumped me with the below question regarding ways to invest in cobalt (and some thoughts on catalysts for the price of same). I've conceded my ig'nance on the topic and am passing along the lunch offer (or a donation of similar value in the winner's name, should the winner not wish to go on a lunch blind-date of sorts with one of my wise buddies) to whoever can answer the question:

"If you can find me a way to play Cobalt outside of the following ways, I will buy you lunch next time (the winner) is in SF:

PD (Phelps Dodge, on the NYSE)
AAA (on Toronto)
FCO (on Toronto)
First Quantum (on Toronto)
Physical delivery or futures...

Reason in this....Hybrid Electric Vehicles (HEV's)

I thought they were a joke at first, but the things are gaining traction. Toyota (TOYOF, otc in the states) predicts 3mm by 2008. The power for these things comes from a battey called nickel metal hydride (NiMH). 7.5 % of these are made of pure COBALT- that is 2.1kg or 4.6 pds per car.

If you take 3mm units x 2.1kg, then the HEV market will create an additional demand of 6,300 mt of cobalt per year by 2010.

As you know I have done a TON of work in commodities and let me tell you, cobalt is one of the tighest markets out there. In my opinion, there's a large chance for a demand-based rip in price.

Also, for what it's worth, I have been buying tons of uranium names in the past 3-5 months. NUCLEAR energy is coming back in a HUGE way."

Send your answers HERE and I'll pass them along to our quizmaster for final judgement.

< Previous
  • 1
Next >
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

Featured Videos