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Why an Energy Crunch Could Lead to Booming Profits in "Solid Electricity"
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There are lots of reasons why a small company share can go up in price quickly. Usually it's an innovative new product, a new market, or, in some cases, a sudden change in the market value of a good, product, or service.

INSIDE THIS FREE REPORT

– Why Aluminium is called "Solid
Electricity"

– Australia is the Saudi Arabia of Bauxite

– China is Aluminium's Largest Producer

Take bananas a few years ago. One day you could walk into a store and buy them cheap. A few cyclones in Queensland later, and banana prices were through the roof. For most share investors, this wasn't an opportunity. It just made bananas and banana bread more expensive.

But in other markets - especially resource and energy markets - a sudden change in the availability of basic resources can change everything. A commodity can go from abundant to scarce relatively quickly. Its price can go from cheap to expensive quickly as well. Naturally, the share prices of companies that produce volatile commodities can change quickly too. We're counting on that this month.

Bauxite is plentiful. You can find it all over the world. Australia happens to have plenty of the stuff. Because of its large bauxite reserves, Australia is also one of the world's largest aluminium producers. But because bauxite has been cheap for so long, other countries that use a lot of aluminium decided to increase production in the last few years. After all, it's cheaper to make aluminium if you have the raw materials than import it. So that's what China and South Africa began doing.

China has increased its production of aluminium, importing bauxite from Indonesia as well as mining its own. In the first three months of 2007, China increased its aluminium production by a whopping 40%. China's ability to produce aluminium is expected to grow by 15% this year, according to the Australian Bureau of Agricultural and Resource Economics (ABARE).

The path to Australia's first big bauxite fortune will look a lot like the path Andrew Forrest trod in iron ore. Forrest - who according to Forbes magazine is Australia's richest man - realised he didn't need to compete with BHP and Rio Tinto. Just becoming Australia's third biggest producer of iron ore would be enough to make him a very rich man.

To find out more about aluminium's impending rise in 2008, simply access our Free report, "Why an Energy Crunch Could Lead to Booming Profits in "Solid Electricity"". To get the report just sign up to receive the FREE financial e-letter, and we'll immediately email you Why an Energy Crunch Could Lead to Booming Profits in "Solid Electricity" ... Absolutely FREE: