Rare earth stocks are soaring today, lead by Molycorp, Inc. (NYSE:MCP), trading at $64.47, +4.62 (+7.72%). This monster move higher is due to three factors. The first is the continued fear over a Chinese monopoly on rare earth, the second is due to future demand of rare metals used to create things the world will need and the final is the fact that rare earth can be looked at as a safety net like gold in a time when Europe is a mess and the U.S cannot get a budget passed. Other stocks like Avalon Rare Metals (AMEX:AVL) and Rare Element Res Ltd Ordinary Shares (AMEX:REE) are also having significant pops.
The two small cap plays that could be the biggest gainers if this run in rare earth plays continues is China Shen Zhou Mining & Resources Inc. (AMEX:SHZ) and China GengSheng Minerals, Inc. (AMEX:CHGS). Both stocks are trading near their recent lows with SHZ currently trading at $3.30, down from a 52 week high of $10.84. CHGS is trading at $1.74, down from a 52 week high of $6.74. What makes these small Chinese rare earth plays so attractive is mainly their current pricing with rare earth prices soaring, and bullish consolidation on the daily charts. Keep these on high alert as they may make a move in the near term as MCP soars.
Gareth Soloway InTheMoneyStocks
Thanks Gareth, I will definitely "keep those on high alert"!
You don't think the pop had anything to do with GE's paper basically saying the prices of many rare earths are up 10x y/y?
The paper gives some insight into the obscure rare earth commodity market, something even seasoned investors tend to know little about.
Ut voluptas non accusantium voluptatum. Quam delectus voluptatibus rerum odio sed veniam sequi. Autem qui nihil harum omnis. Ut at dolor aut aut nesciunt voluptates cumque eius. Doloremque in ab quidem alias libero minus. Placeat cumque fugiat laboriosam quam error magnam.
Placeat ipsam maiores nobis cum. Voluptates dolores ex ipsam omnis et voluptas.
Velit quasi saepe aut reprehenderit. Voluptas dolor sint quod quo praesentium. Necessitatibus distinctio natus rem et expedita corrupti quia vel.
Magni aliquid consectetur ducimus officiis distinctio ex magni. Deserunt ut quam eum enim voluptas et. Quibusdam totam veniam aut soluta ipsum dignissimos neque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...