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This $1 Stock Unlocks Tech’s Hottest New Sector

32 | By Michael A. Robinson

We’ve talked many times here about how so-called “Miracle Materials” are literally changing our lives.

Well, last month, those Miracle Materials rescued my vacation.

And they may also have saved my health.

Let me tell you my story.

And then I’m going to tell you about a Miracle Material play that’s highly speculative – but offers a lot of potential upside.

And it trades at only $1.30 a share.

So stick around today while I tell you my tale …

The Ski Trip That Almost Wasn’t

I got so involved with the planning, design and launch of my Strategic Tech Investor and Nova-X Report investor services that I hadn’t bothered to take a vacation for a couple of years.

And I really wanted to have a long “getaway” weekend with my family. So early last month, I made reservations at a Vail, Colo., ski-resort lodge.

But then I worried that my body wasn’t going to cooperate. My knees, lower back and neck have been on the cranky side of late, and I didn’t think they’d hold up to the beating that comes with a high-speed run down the white-powdery run.

Before I ditched my plans, my 14-year-old daughter came to my rescue … my 14-year-old daughter and “Miracle Materials,” that is.

She told me about a product that she uses to offset her occasional volleyball ailments.

It’s called KT Tape, and it is composed of synthetic microfibers that provide needed support to painful parts of the body – and speed up heeling as a result.

Granted, by the time I was done taping up, I could have been Brendan Fraser’s stand-in looked like something out of the The Mummy Returns.”

But it was totally worth the effort … I got in five days of wonderful skiing.

And now I’m back here feeling rejuvenated – as I look for ways to help you make money.

Of course, there’s more to Miracle Materials than getting help with nagging injuries.

It’s one of the biggest profit opportunities in the high-tech sector.

Today, I want to talk with you about three of the Miracle Materials sectors that I’m targeting … and to tell you about a super-low-priced stock with 300% profit potential.

So let’s get down to it …

Golden Age

It’s not often that you get a chance to get in on the “ground floor” of an entire new business.

But that’s just what you have here.

In the past, you’ve heard me say that we are living in the “Golden Age of Materials Science.” You see, without Miracle Materials – and the science that backs them – we simply wouldn’t have some of the unique high-tech products we take for granted: smartphones, electric cars, and new drug therapies just to name a few.

Here are three areas of Miracle Materials every tech investor needs to know about.

Miracle Material No. 1: Synthetic DNA

I was having dinner with the CEO of a biotech firm not long ago when the conversation wound around to Miracle Materials. To underscore their importance, Miracle Materials scientists are now early participants very early in the product-discovery phase of the global-tech ecosystem. Advanced technologies, you see, now require breakthroughs in a wide range of materials – from polymers to metals to medical molecules.

Nowhere is this need more obvious than with the development of synthetic vaccines.

Since synthetic vaccines stem from fragments of man-made DNA, the idea is to “program” them to fight the flu or other diseases.

I see this approach as a “Disruptive Technology” that will turn the $30 billion vaccine market inside out. Besides the flu, firms in this space are working on synthetic vaccines for leukemia, HIV, malaria, hepatitis and cancer.

Currently, no firm has a synthetic product on the market for human use. But trust me, those products are coming. Several are in clinical trials right now – just awaiting U.S. Food and Drug Administration (FDA) approval.

This field of material science is extremely important for a couple of reasons. First, during the past several years, we’ve seen new flu strains develop. And developing vaccines to combat them in a timely manner – using longstanding organic strategies – takes too doggone long.

And, second, if there’s a big outbreak, or a flu virus mutates, the use of 60-year-old organic strategies will keep us from developing needed vaccines in a timely enough manner, or in big-enough quantities. In short, if there’s a big outbreak, we’d never be able to react in time.

But once synthetic vaccine technology receives FDA approval, scientists will be able to engineer and scale up for full production in a matter of a few weeks.

And that, I can tell you, is the true definition of a “miracle” material.

Miracle Material No. 2: Engineered Carbon

This substance ranks as the thinnest material ever created. If you stacked 3 million sheets of this stuff on top of one another, the entire array would be a single millimeter in height.

Even so, this two-dimensional structure made from carbon atoms is incredibly strong: It would take an elephant balanced on a pencil to break through a sheet as thin as Saran Wrap.

And while scientists refer to this as “engineered carbon,” the mainstream news media and retail investors know this super-strong substance by a different name.

They call it “Graphene.”

The intense interest is understandable: This form of engineered carbon boasts seemingly endless uses – from sensors to semiconductors, batteries, energy-generation, medicine, transportation … it’s limited only by our imaginations.

I firmly believe that graphene will revolutionize the economy. But I also believe that its full, commercial benefits won’t be realized for several years.

For a second form of engineered carbon – one that seems less sexy, but is just as robust – the time is now. This form is graphite – a close cousin of graphene. It’s a critical ingredient for lithium-ion batteries, which require about 10 times as much graphite as lithium to operate. And lithium-ion batteries are the preferred energy source for a wide range of consumer electronics, including smartphones and electric vehicles.

Electric-vehicle production will remain a major driver for this industry because the batteries are so much bigger than those you find inside smartphones or tablets.

Byron Capital Markets estimates sales of electric and hybrid cars will skyrocket tenfold by the end of this decade, rising from 250,000 units in 2012 to roughly 5 million globally by 2020.

And that brings us to our third, and last, version of Miracle Materials – one that I was perhaps the first analyst to recommend to investors.

Miracle Materials No. 3: Rare Earths

Rare-earth materials (REMs), is a field I first began covering back in the 1980s as part of my analysis of Ronald Reagan’s Star Wars program. As many investors today know, rare-earths are at the heart of many defense applications, including laser-guided weapons, jet-engine parts and night-vision goggles.

What those same investors don’t realize, however, is that there’s also a huge need for rare earths in many consumer applications, as well. We’re talking everything from smartphones and tablets to digital cameras and fiber optics to MRI machines and LED lighting.

That’s why I’ve chosen rare earths as our “Miracle Materials” profit play.

Miracle in the Making

The company I’ve identified is Tasman Metals Ltd. (NYSE: TAS), an exploration-stage company whose CEO is someone I know well. I’ve met CEO Max Saxon, and have held a number of follow-up conversations with him.

Saxon is one of the world’s top geologists. A few years back he discovered the Nora Kaar rare earth mine in Sweden, a tract that is considered of vital strategic importance for Europe.

European authorities want to source rare earths on the Continent – rather than importing them from China, which has used export restrictions to hoard its supply. European leaders have all but guaranteed Tasman a built-in customer base when Nora Kaar opens.

The company recently expanded its metals portfolio by acquiring a large tungsten project – also in Sweden. And it offers investors another potential new catalyst.

Two months ago, Tasman said it was negotiating a merger with Flinders Resources (TSX.V: FDR/OTC: FLNXF), which owns a large graphite mine in Sweden that could begin production next year.

I think that merger will go through if for no other reason than Saxon founded both firms. I also believe that a rare-earth/graphite combination makes for a very powerful mining firm.

And the timing looks to be excellent. After three years of struggle that has been tied to fears of a slowing China economy, the rare-earth sector appears to be headed for a rebound.

Tasman’s shares have already rallied about 30% over the past three months, but still trade at about $1.30 each.

And that’s still well below its three-year closing high of $6 each. If the stock can recover half that amount in the next two years, you’d be looking at a potential upside of nearly 150%.

Let’s be clear about a couple of things here.

First, Tasman is the embodiment of a high-risk stock. Given the fact that it’s both a turnaround and a merger candidate, we’d actually label this as a “Special Situation” profit play. This is only appropriate for the high-risk portion of your portfolio – and then only for investors who are truly able to stomach the volatility we all know is possible, even probable, with a small-cap stock like that.

Making it even more imperative that you be honest about your capacity for risk is the reality that stop-losses rarely work for exploration-stage mining firms. Instead you need to use a time-based risk-management strategy – probably investing and riding out the Tasman’s swings for a good two years.

So you should only invest an amount that you feel comfortable tying up for two years – but certainly no more than 1½% to 2% of your total holdings. This is definitely not a “back-up-the-truck” stock.

But I feel strongly that every investor should have at least one stock like this in their portfolio. As we talked about in the past, once you have your solid foundation in place you can look for these kinds of unique investments to help turbocharge your returns.

We’ll keep an eye on this for you.

See you later this week.

[Editor’s Note: If you want us to occasionally present more stocks like this in the future, let Michael know. Or take a look at his newsletter The Nova-X Report.]

32 Responses to This $1 Stock Unlocks Tech’s Hottest New Sector

  1. Geoff Strowger says:

    Hi Michael,

    I read your e-mail with interest, but had a big question when I reached the conclusion: whereas I like graphite and tungsten, I’ve lost several shirts in the rare earths sector over the last 5 years and whereas there’s low geopolitical risk in Sweden, I have a concern about the environmental and technical issues involved in extracting and refining the rare earth metals. What’s your take on that in the case of Flinders?

    Geoff Strowger

    • lea v says:

      Totally agree! Market Vectors Rare Earth/Strategic Metals ETF (REMX) lost have of their value in 2 years! My worst trade!

  2. Ralph Arbitelle says:

    I have been interested in the Graphite material for quite some time now and I am glad to see that you feel as I do concerning it’s future. I am especially glad to see that you feel as you do about Tasman Metals Ltd since that is where I have made my initial investments. Your information has always led me in the right direction and I appreciate that..

  3. Ronnie l sanders says:

    This is all good information on new break out stocks. I am new to the stock market and honestly I haven’t invested into the market at all. I don’t have thousands or even ten of thousands to invest I have a couple thousand and I would like to know how to get into the market? Or even if I have enough to start?

  4. BERNARD NARCY says:

    I, FOR ONE, REALLY LIKE THESE TYPE OF STOCKS. KEEP UP THE GOOD WORK. JUST LOVE TO FOLLOW YOU. GREAT WORK.

  5. Frank Birdsong says:

    Will Strategic Tech Investor be a trading service in which you will make recommendations for entry, provide update information, establish and maintain stops, and provide exit recommendations?

    If so then please do include high risk items like TAS for which you have specific reasons to believe it should pan out in a couple of years or less. If you will only point the stocks out to us and from there on we’re on our own, I’m not interested.

    thank you,
    Frank Birdsong
    Alexandria, Virginia 22311

    • William Patalon III says:

      Dear Mr. Birdsong:

      If you’re looking for a “full-service” newsletter in the high-tech arena, you might want to take a look at Michael’s “Nova-X Report” or his “Radical Technology Profits” advisory. They’re both very good and offer all the features that you cite. As I’m sure you understand, expecting that full menu of services from a free newsletter just isn’t standard fare. As it is we have a pretty large staff involved in the development, production, distribution and maintenance of Strategic Tech Investor. And like any business, we can only continue to operate if we actually generate revenue. So what we aim to do is to make sure that ALL of our technology publications — free ones such as this one, and subscription-based services such as Private Briefing, Nova-X and Radical Tech — are the “best of breed.” If you want more information on any of these, contact our customer-service folks, and tell them that I sent you.

      Thank you, sir, for taking the time to comment. And allow me to wish you well.

      Respectfully yours;

      William (Bill) Patalon III
      Executive Editor
      Money Map Press

  6. Robert Siedell says:

    I believe Molycorp (mcp) has the largest proven Rare Earth reserves in the U.S. What about it’s prospects?
    When I think about ” upside potential ” I am thinking of profit gains.
    1/2 of 6 is 3 – 1.30 = 1.7 or a gain of 130% not nearly 300% ?
    Regards, Robert

  7. george a eifler says:

    Hi Michael,

    I really like your work. Thank you. Glad you got out on the slopes and cleansed your lungs with that great Colorado mountain air. It should add a few years to your life. Remember, the clearer your lungs the longer you can live and work if you choose. .

    Which synthetic DNA companies are the furthest along with their clinical trials?

    • William Patalon III says:

      Dear George:

      Michael wanted me to pen a response to thank you for your exceptionally kind note. We’ll look into your question. In the meantime, allow us to wish you the very best … you personally, that is.

      Hope to hear from you again, sir.

      Respectfully yours;

      William Patalon III
      Executive Editor
      Money Map Press

  8. Ken says:

    I would like to see more options like Tasman Metals. I like the story and think it is worth the risk.
    Thanks.

    • William Patalon III says:

      Dear Ken:

      Thanks for taking the time to post this. It’s this kind of feedback … and encouragement … that will induce us to produce more columns on stocks of this ilk.

      Cheers to you, sir.

      Respectfully;

      William Patalon III
      Executive Editor
      Money Map Press

  9. Loran Kollmorgen says:

    I’m intrigued by the possibility of small technological companies making it big in the scientific world my grandchildren will inherit. I’m particularly interested in materials that will make 3D printing even a bigger thing than it is now. How about a company that would make tungsten applicable to 3D printing or silver for coins to commemorate a very special corporate event.

  10. David Hobday says:

    Re graphene and high grade flake graphite, how about Syrah Resources, SYR on the Australian Stock Exchange with the largest resource in the world in Mozambique, more advanced than most, with major offtake agreement in place.

  11. Pete Davies says:

    There is no upper limit to the possibilities with Graphene. Keep your eyes peeled for more graphite mines or processors of Graphene.

    • William Patalon III says:

      Dear Peter:

      We agree. In one of our affiliate publications, Private Briefing, we recently wrote about how researchers are looking to replace the silicon in microchips with Graphene. The “ceiling” on chip speeds would essentially be eliminated … if it can be made to work. Just give it time.

      Great post, BTW … and thank you.

      We’ll keep checking in on this topic .. there’s clearly lots of interest.

      Respectfully yours;

      William Patalon III
      Executive Editor
      Money Map Press

  12. Jan Kiefer says:

    I’m new to investing and appreciate your comments and suggestions.

    But, my burning question is: If there is a serious downward shift in the economy, and stocks plummet, what sectors of the market do you think are the most volatile and which are the best ones to be in? Given the “crash” of 1929, I know that many people did very well and others lost it all. I don’t want to be one of the losers. I don’t have much but I want to keep as much as I can. I am not asking for specific stocks but rather a general opinion (which I value, highly).

    Thank you.

  13. Susan Tappan says:

    The more I read about these kinds of obsure investement vehicles the more I want to know about them. Very interesting article. Yes, indeed, please keep me in the loop.
    Thanks!

  14. Don Murray says:

    So, I’m not really an investor, but have a few buck in Bitcoin and would like to put a few down on Tasman Metals, Ltd. Where can I purchase and is there a minimum?

    Don

  15. Robert Siedell says:

    I really do enjoy all of your articles. The technological advances seem to be reaching a snow balling effect. Just when I think , wow this has to be the thing, something seems to trump it.
    how about the metal thorium? destined to replace uranium?

    Robert

  16. Louis E Trapasso says:

    I cannot contemplate a process that peels thin films of grapheme from the mineral graphite with consistency and without contamination. The manufacturing process must, I believe, involve chemical vapor deposition of carbon or a carbon precursor onto a surface. There is a British company that does this from ethanol. How are they doing?
    About 40 years ago the rare earth ions were separated by ion exchange (a very laborious process). If there is better separation technology, the company that has it is the winner.
    Yes, Michael, I am interested in miracle materials.

  17. HASSANI SYNCLAIR says:

    I am very interested in the Engineering Carbon and Synthetic DNA. I would like to see more on this, as wel as use this as a doorway into investing into the bit coin world as well. Would like to transfer cash into bit coins.

    The Rare Earths has the potential of going forward based on being most used in military tech, which gives validity that it could go strong in conventional commercial use, as much of the private military section has found its way in doing so

  18. LEE says:

    As a new limited investor I came across info on grapheme. It is very interesting, but China seems to produce most of it-very little in the US. However awhile back an article about it in Alabama was published. A small town use to mine it in WW2. Are you aware of US stakes in mining Graphene . Many thanks for your info.

  19. George Kladnik says:

    There are several significant opportunities now in the rare earths field outside of China, which has been depressed in recent years. There will be growing demand for these critical limited supply metals in the near and long term future for many high technology applications. This is an ideal time to invest in leading companies in this field such as Tasman and Molycorp with their low share prices. A little serious reading on the subject clearly elucidates the investment opportunity now.

  20. Roobert .V says:

    Wunderfull – tech -rare earth- information is the tool to gain wealth -of any stratagy to secseed in life !
    Thank you Michale & all at S-A
    (how do we find your feed back to questions asked ? ? )

  21. John Currie says:

    OK, you’ve got me guessing, did you ever mention the $1.30 stock? It’s not the tape, it’s not Graphene, I have Graftech, and Tasman metals doesn’t fit, so how much do I have to pay to find out?

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