Wednesday, January 05, 2011

Rare Earths for Dummies - REE sector is getting Hot tnr.v,czx.v,,, ree, mcp, appl, tm, ge, gm, quc.v, mdl.v, nsany,, cee.v, lit, li.v, wlc.v, clq.v, fmc, sqm

  Hot money in rare earths are already made and now it is time to search for under the radar screens plays in the market, which are still napping during the consolidation stage.

"TNR Gold Corp. staked the Big Beaver House rare earth element ("REE") property, one of the largest carbonatite complexes in Ontario at 5 by 5 kms in scale. The project has experienced limited historic drilling with only partial elements analyzed for. When the Ontario Geological Survey analyzed the historic drill core for the full spectrum of elements, significant REE mineralization was confirmed with reported Nd+La+Ce grades up to 3,200 ppm indicating significant REE potential. The Big Beaver House project represents an excellent exploration target for REEs and is a prime example of the opportunities that the Company continues to source out, identify and acquire."

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advise on this blog and there is no solicitation to buy or sell any particular company here. Always consult with your qualified financial adviser before making any investment decisions.

"This year we have a staggering number of reports and warning on the looming Peak Oil situation. It takes time for reality to settle in, particularly, when nobody knows what to do with it. We have put REE in the headline and only few months ago we would have to explain, what is it all about - now suddenly everybody is talking about REE and stocks involved in Rare Earths are all making new highs. It takes a crisis for us to realise that fundamentals are driving the real trends. Sudden realisation that China controls more than 90% of REE market and their reserves maybe will last only for another twenty years, created the catalyst in the market place. What will it take to realise that we are running out of cheap oil? Another crisis?
  We are talking here about the powerful mega trend Inflation multiplied by Peak Oil situation - we have to move and readjust our society. Our Energy diet is not sustainable any more. We are lucky in a sense that there is technology available to us to survive the Oil Shock if we will all move fast - Electric Cars. It is our Next Big Thing and at the heart of this disruptive technology lie strategic commodities: REE and Lithium."


By Louis Bedigian
Benzinga Staff Writer

It seems like you can't turn on the TV or visit a financial website without hearing about the necessity of rare-earth minerals. But while everyone is aware of them, very few know what they are, why they're important, and why shares of these companies are skyrocketing on a daily basis. In this article, Benzinga has compiled a list of news and stock information to help clear up the confusion.
Last week, China reduced its export quotas for these peculiar minerals, causing great concern among electronics, automobile, and green technology manufacturers.
The reasons why have more to do with the supply chain than the availability of rare-earth minerals, which are mined from the Earth's crust. The United States currently imports 87% of its rare-earth mineral needs from China, despite having some reserves of its own. China, meanwhile, supplies more than 95% of the global market.
Not surprisingly, Chinese export quotas have now become headline news. Without rare-earth minerals, Apple (NASDAQ: AAPL) iPods and iPhones could not be manufactured; Toyota (NYSE: TM) cars would lose their hybrid batteries; General Electric (NYSE: GE [FREE Stock Trend Analysis]) couldn't produce any wind turbines; and General Dynamics (NYSE: GD) wouldn't have any engines to fire up its F-16s.
These are just a few of the many different products that require this hot commodity. If it weren't for Molycorp, Inc. (NYSE: MCP), a U.S.-based company that owns a facility in Mountain Pass, California, this might have been the time to panic. Though the facility may not go online until 2012, Molycorp has gained a lot of attention as the largest domestic rare-earth miner. Analysts Piper Jaffray and Dahlman Rose have taken notice of the firm's market position, adjusting their respective price targets accordingly.
Molycorp has been surging since September 2010, at which point the company's government-regulated “quiet period” came to an end. At that time, Molycorp was trading at $22. Today, Molycorp is trading at roughly $60 per share.
Molycorp isn't the only company benefiting from the need – and potential shortage – for rare-earth minerals. China Shen Zhou Mining & Resources Inc. (NYSE: SHZ [FREE Stock Trend Analysis]) is trading up roughly 19% today. After an early afternoon surge of nearly 2%, Lynas Corp. Ltd. (OTC: LYSCF) is trading closer to yesterday's close of $2.27.
On the other hand, Market Vectors Rare Earth/Strategic Metals ETF (NYSE: REMX) is trading down 3%. Rare Element Resources Ltd. (NYSE: REE) is trading down roughly 5%, and Avalon Rare Metals Inc. (NYSE: AVL [FREE Stock Trend Analysis]) is trading down more than 6%.
As the need for rare-earth minerals increases, these stocks are expected to perform well. But they are not impervious to market fluctuations. In fact, just this morning, Benzinga reported on a rare-earth rumor that suggested the stocks could be due for a sell-off."

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