Buy Focus Graphite Inc. (FCSMF)   4 comments

Plastronneke posted this link from Investor Intel in the comments on Saturday: Offtake agreement announced; Focus Graphite makes history. A graphite junior miner becoming a regular graphite miner is a strong positive, especially since it comes with a light debt load, and when the price/book is only 91%. On top of this, the graphite is high quality, which should fetch a slightly higher price.

Why am I interested in graphite? By itself, it has plenty of industrial applications, aside from the slowly-becoming-obsolete pencil lead. But my main interest is in the long-term potential of it, specifically graphene, which is a one-atom thick layer of carbon made from graphite. The potential applications of graphene are incredible. As always, there is a catch: Graphene is hard to produce. Fortunately, many companies and researchers are working on developing a cost-effective means of manufacturing it. When that happens and is put into use, the demand for graphite could skyrocket. However, we could be at least 5-10 years from that happening.

But I see this as an opportunity to get into that potential early, taking advantage of a small growing company which can still sell graphite for currently available uses. My strategy here is to try and get my initial investment out of it eventually, via the usual penny stock “pops and drops”, and then I can let the rest of it ride for years if necessary, looking for the eventual graphene pop.

I will be buying an extra small position of Focus Graphite Inc. (FCSMF) today, with a plan to double it if it drops. Even if I end up doubling it, I expect it to still be an extra small position. I will post an update when I buy it.

UPDATE 11:52 am EST: I decided to hold off on buying FCSMF. With it up 25% today, I missed it. I may try again tomorrow.


Posted December 23, 2013 by edmcgon in Portfolio Moves

4 responses to “Buy Focus Graphite Inc. (FCSMF)

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  1. Ed – kind of an interesting company. But seems like it might be difficult to accumulate much of a position. They trade an average of 92,000 shares a day. At 29 cents that is about $30,000 of average trading $ volume. Just our little group here could easily move that market.

  2. I bought Focus today @0.40, a very little position. This was one of the things I was waiting for, so I bought. I can buy more later.
    I noticed the past year the didn’t went down as hard as many other juniors I am following – which ofcoursen doesn’t mean they can’t sink lower.

    About the low volume: I presume you can’t buy the TSX-V in Canada where I buy them? And since shares can be sold on any of the markets, I don’t think it would take long before some buy on the pinkies and sell on TSX-V when there is a price-gap.

    • plas,
      It’s rare that I will buy a stock, especially a penny stock, that is up 25% in a day, unless I think it is hugely undervalued. This stock shot well past the “undervalued” area. It could still be cheap on potential, but I’ll wait for a dip to buy.

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