Alex Reid at Wealthpin is out with a new stock teaser.
This one promises an investment with potential gains as high as 20,000%, and Reid is calling it "Black Gold."
That seems too good to be true.
Regardless, Alex left enough clues in the presentation to figure out the stock.
So there's no need to buy his newsletter to learn the name of the company he's teasing.
I reveal it below along with other information to help you decide if it's worth investing in.
Let's get started!
Black Gold Summary
Creator: Alex Reid
Stock: Graphite One (GPHOF)
The entire pitch is about graphite and its importance in many modern products, mainly in lithium-ion batteries, which are used in EVs.
The company being pitched by Reid is Graphite One, which is a small company that mines graphite mainly in Alaska.
They're most known for their mining operation called Graphite Creek, which is the biggest flake graphite deposit in North America.
Additionally, they're mining graphite used in lithium-ion batteries.
Right now, something like 80% of graphite is mined in China, and basically 100% of the graphite used in lithium batteries is mined there.
The idea is that the Inflation Reduction Act and various tax credits given to car companies whose batteries are made with American resources will boost Graphite One's stock.
It's a nice story, and it could very well happen. There seems to be a push to stop relying on China for important resources, and graphite seems like one of them.
However, you can't just snap your fingers and increase production at mine.
It costs a lot of money to buy new mining equipment, and the high interest rates make it harder to get loans.
Graphite One is a very small company, and that makes it extra risky.
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Black Gold FAQ's
If you watched the Black Gold presentation, I'm sure you have some questions about it.
Here are answers to any questions you might have about this teaser:
1) What Is The Theme Of "Black Gold?"
Alex Reid of Wealthpin is a newbie in the investing world, and this is the second time I've covered one of his presentations.
Previously, Alex ran a teaser about "future fuel" and hyped up a company called Plug Power.
He claimed it would see gains of 46,000%.
However, the stock is down about 50% since he recommended it.
The reason I bring this up is because Alex's newest stock teaser, black gold, is very similar to that one.
It's written in the exact same style and promises massive returns (20,000%).
But just because Alex can be persuasive and promise big returns doesn't necessarily mean it will happen.
Just ask his subscribers who have bought Plug Power.
Anyway, this teaser focuses on "black gold," which is graphite.
Graphite is an important resource that's used in many modern products and is especially important in the production of lithium-ion batteries, the main battery type used in EVs.
Alex believes this mineral will only become more important as time goes on, and there's some proof to back this up.
Many analysts are predicting the need for graphite to grow exponentially this decade.
2) What is graphite used for?
The main focus of "black gold" is the use of graphite in lithium-ion batteries.
However, there are many other uses for this resource as well.
Some popular products that graphite is used in include:
- Graphite is most frequently utilized as the primary component in pencils. It is a type of carbon that, when rubbed across paper, makes a dark gray stain.
- Lubricants: Due to its low friction and heat resistance, graphite makes a superior lubricant. It is frequently utilized in machinery and equipment that works in hot environments.
- Graphite is utilized as the anode material in lithium-ion batteries. It offers an effective and reliable electrical conductivity.
- Refractories are materials that can endure high temperatures and are used to line furnaces and other high-heat industrial applications. Graphite is a component of refractories.
- Graphite is utilized in composites as a reinforcing material. It can make materials like metals and polymers stronger and more rigid.
- Nuclear reactors: Graphite serves as a moderator in nuclear reactors, slowing down neutrons and preserving a controlled nuclear chain reaction.
- Sports equipment: Graphite is used to add strength, stiffness, and longevity to sports equipment like tennis rackets, golf clubs, and fishing rods.
So lithium ion batteries aren't the only thing graphite is used in.
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3) What is the company that Reid is pitching?
There were a lot of clues in the presentation that made figuring out the company very simple.
Besides mentioning the stock price is around $1, this clue is what led me to figure out the company is Graphite One:
A quick Google search would show the biggest graphite deposit is in Alaska, and it is called Graphite Creek.
It's owned by Graphite One.
Another thing to note is that there's basically no graphite mining happening in America.
There's some mining being done in Alabama and Alaska, but that's basically it.
So there aren't too many companies that fit this description from Alex.
Is this company worth investing in?
We'll tackle that in the next section.
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4) Is Graphite One worth investing in?
Like I said in the last section, there's basically no graphite mining happening in America.
So while the headline about Graphite One owning the world's biggest graphite mine" may seem impressive, it's not.
It's like being the tallest midget.
The main producers of graphite are:
- North Korea
The main idea for Graphite One is that there's a push to become less dependent on China for various reasons.
China dominates the graphite industry and produces more than 80% of the world's graphite and basically 100% of the graphite used in EVs.
However, there are some incentives from the US government to start producing graphite in America.
And the hope is that Graphite One will be able to expand production, which would have positive effects on the stock price.
Reid claims Graphite One is sitting on $24.9 billion in graphite.
This is why the company believes Graphite One can grow by over 20,000% because $24.9 billion is 20,000% higher than its current valuation.
However, the world's graphite market is less than $24.9 billion and is only expected to be worth more than that in 2028.
So the only way Graphite One could possibly grow 20,000% is if it represented the entire graphite market, which isn't going to happen.
While it's possible Graphite One can grow, it's very, very unlikely to grow 20,000%.
And there are roadblocks to growth.
Mining equipment is very expensive, and Graphite One isn't a profitable company yet.
So that means taking out loans and taking on more debt to grow and buy new equipment.
Interest rates are high, and banks might not want to loan money to a company with no revenue.
5) Is Wealthpin worth buying?
Alex Reid seems like a newbie to the stock-picking world and is a very young guy.
He has no clue how he got his start or anything like that.
But he's already using the absolute tactics in the stock picking industry.
He makes enormous promises for his investment ideas.
The two presentations I've seen have hinted at returns as high as 46,000% and 20,000%.
Just absurd promises that have zero chance of coming true.
If a stock picker is willing to resort to nonsense like this, then they're pretty much capable of anything.
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Wrapping Things Up
So that's the end of my overview of the "black gold" stock teaser from Alex Reid.
This is your typical stock teaser that promises you insanely high returns and overhypes the investment opportunity.
At least you don't have to pay to learn the company is Graphite One.
Is this a worthy investment?
Maybe the government incentives and the push to become less dependent on China will increase the size of Graphite One.
It takes time to grow a mining operation and a lot of money.
So if you invest, understand that it'll take a lot of time to see a return.
And understand that this is very speculative and could result in the loss of your entire investment.
Whatever you do, I just wouldn't expect to get 20,000% returns.
So are you going to invest in Graphite One?
Let me know below in the comments.
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