Topic: How To Invest

Dear Pat, There is some talk about a 231-year-old discovery in China that allegedly is going to boom. What do you know about this? All the best.

Article Excerpt

You may be thinking of the “231-year-old discovery” of the uses of a certain metal. This was discussed in a recent stock promotion. The metal is likely molybdenum, which is used in stainless steel. Molybdenum prices soared last year, then collapsed, and have now rebounded somewhat. The stock the promotion refers to is probably Thompson Creek Metals, $10.87, symbol TCM on Toronto (Shares outstanding: 139.2 million; Market cap: $1.5 billion). Thompson Creek is a Canadian molybdenum producer with mining, milling, roasting and marketing operations in Canada and the U.S. The company’s operations include the Thompson Creek mine in Idaho, a roasting facility in Langeloth, Pennsylvania, and 75% of the Endako mine and roaster in British Columbia. In the three months ended June 30, 2009, Thompson Creek’s revenue fell 69.7%, to $73.8 million from $243.9 million. (All figures except share price and market cap in U.S. dollars.) The decline was due to a 71% fall in the price of molybdenum, to $9.41…