How Focusing on Focus Graphite May Pay Quite the Dividend

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Continued from Part One.

After inspecting my ear and prescribing a round of medications, Dr. Sheep scrawled the names of Focus Metals and Northern Graphite — including their stock-exchange ticker symbols.

You see, Dr. Sheep wanted me to follow these two closely, simply to give me the opportunity to cash in on skyrocketing stock movement, as he had, two years ago.

Before I left my ear checkup, he shuttled me into his office. On his Dell desktop, he had the Yahoo! Finance page all pulled up and ready to go. In his groups, he had several metal sectors listed, including rare earths (he looked to own stock in Molycorp).

He fuddled a bit, but showed me that his $5,000 investment in Focus Metals two years ago doubled almost overnight.

“I told my friend, ‘how about you and I go ahead and each buy $5,000 worth of stock at 50 cents a share?’ We agreed, and I made my investment,” he told me.

That was on Feb. 2, 2011. Nine days later, Focus Metals’ stock more than doubled.

Source: Yahoo! Finance

“When I met up with my friend afterwards and told him we’d made 100 percent on our investment, he said, ‘I ended up not buying the stock!’” Dr. Sheep exclaimed. “I got out after that.”

Ahh, metal market volatility. Investors love it if it goes their way. (For buyers, as we all know too well, it can be a much different story.)

Because China holds so much of the graphite market, junior miners such as Focus Metals — based in Quebec and having changed its name to Focus Graphite only recently — are scrambling to get enough supply to market.

That’s because graphite and graphene demand remains high. In addition to lithium-ion batteries in handheld electronics, the electric vehicle (EV) market’s batteries feature a substantial amount of graphite.

Graphite demand is expected to increase as charging technology progressively gets better (although this may take much longer than expected, and who knows how big this factor will be for people mulling the switch from gas to electric).

However, savvy market watchers and analysts are bullish.

Continued in Part Three.

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