Formation Capital Offers a Rare Opportunity: a Cobalt Play

Instead of my usual discussions on gold,<!----> silver and the banking sector,
I want to talk about a different subject and company this time. It is
about cobalt and a cobalt producer in North America. I usually pay more
attention to the precious metal area, but cobalt and cobalt producers
are very uniquely situated in the metal industry, which offers good
diversification outside the typical precious metal miners in my
portfolio.

Last
Thursday (6/12) in New York City, I attended a corporate presentation given by Formation
Capital (FCO) CEO Mari-Ann Green and
President Scott Bending. FCO is a Canadian cobalt producing company
headquartered in Vancouver with their cobalt mining operations in
Idaho. I purchased FCO shares last August, when the whole mining
sector including FCO got hammered by the subprime sector and credit
crisis. I thought I bought them at the right time, but FCO along with
the whole junior mining sector have been range bound since then for
almost a year now, with FCO now not a lot higher than my purchase
price.