Orbite V.S.P.A. inc. (Exploration) (TSX.V: ORT.A, NASDAQ.PK:EORBF, Frankfurt: 3XO)Orbite (pronounced “OR-beet”), besides having one of the clunkiest names and most arcane (and subsequently,hard to find) stock symbols (its a throwback from the old Montreal exchange), is the pubco gift that keeps on giving.
MidasLetter subscribers were fortunate enough to here about the company back in February of this year when whares were trading around $1.59. Since then, the stock has more than doubled, and investors are ecstatic.
Short term traders have been reaping fortunes buying Orbite below $3 and then selling it again above
$4. Thats not a situation that is likely to persist, however, for one simple reason: Orbite is going to revolutionize
the entire aluminum production industry. That might sound like hubris, but it isn’t. This is the technology
game-changer that is going to make Orbite a householdword on the NYSE or NASDAQ, which is where they’re
sure to end up, within two years. For now, they've applied for a listing on the TSX senior board.
And the beautiful thing about it, is that applies whether or not the global economy goes to hell in a handbasket.
Things may get very bad, and demand for industrial raw materials will plunge to new lows as China implodes,
but Orbite’s technology and output (they own their own alumina mine as well) will be in the highest demand of all aluminum producers in the world, simply because its going to be cheaper.
CEO Richard Boudreault, in a nutshell, has developed a process that produces 100% pure aluminum from
alumina clays, completely sidestepping the industry standard requirement of mining bauxite to produce
aluminum. What’s more, this process is applicable to other mineral processing standards that currently employ less efficient feedstock due to metallurgical purification and extraction complications.
If you’re thinking, “If this is so revolutionary, why hasn’t the company been bought
by a major?” The answer to that question is: wait a bit. With a $50 million bought deal just announced today, that could be closer than you think.
Earlier today the company announced that it had successfully produced a large scale aluminum metal ingot from its metallurgical grade alumina (SGA), following a continuous 50-hour electrolysis test to reliably produce the large scale aluminum metal ingot.
Thats precisely the kind of 'proof of concept' the majors have been waiting for, and you can bank on the fact that this company is going to get taken out by one of the major aluminum companies sooner rather than later. I'll bet it happens before the end of 2011.
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