It's official now. Cobalt Blue has been withdrawn from consideration for the 2007 Kentucky Derby. The decision was apparently made by owner Merv Griffin. According to trainer Doug O'Neill, "Merv said don't run that horse just for me. If we need to bring him back home and find a different spot let's do it."
Lackluster recent works and a 7th place finish in the Illinois Derby (as the chalk) sealed it. I think they made the right decision.
So the "gutsy" Teuflesberg is most likely in based on graded earnings. I think he'll probably be one of the horses vying for the lead past the crowd the first time.
Here he is in the 2007 Southwest Stakes when he beat Hard Spun among others at 23-1:
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