Saturday, September 25, 2010

Rare Earths Update

This article was posted by the WSJ on Thursday "China Denies Halting Rare-Earth Exports to Japan". Remember China hold ~97% of the world's rare earths production.

The rare earth sector has already been on fire, but this just dumped a barrel of gasoline. Here are 2 traded on the US exchanges:

Rare Element Resources Ltd. – Up 32% since the Thursday's announcement. Up 114% in 1 month.

Molycorp, Inc. - Up 13% since the Thursday's announcement. Up 86% in 1 month.

The masses are far away from this sector. Once would think a 100%+ gain is time to get out and celebrate, nope, I am looking for 5-15 times gains in the years to come.

FACTBOX-What are rare earth elements?

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