Our Time Is Soon To Come....As John Kaiser so aptly pointed out in his recent piece on MCP, there is a huge disconnect between the prices of the front running REE companies in relation to the selling prices of REE which btw are continuing their meteoric rise upward.
John also indicated that there is a ''growing list of potential catalysts for renewed attention coming to the rare earth sector...''. IE: Molycorp closes their offerings today, China should be announcing their 2011 2H REE quota for the ROW (rest of the world) before the end of this month, etc.
In my mind the turning point for the whole REE sector will be the 2H quota announcement. I also feel that the amount they release will be a shock to the world, as in much less than anticipated. The reason I feel this is because of the just announced plan by China to now stockpile massive amounts of HREE (see recent Wall Street Journal article). They are telegraphing their intentions, make no mistake out that.
China also quite frankly doesn't care one iota about what happens to the ROW and their need for REE. Their main focus is the preservation of China and their own short and long term ambitions.
If the 2H quota shocks the world, as JK has predicted many times before will come true...a worldwide panic. This panic will force end users to capitulate and jump in to with both feet to procure their own secure supply of REE. This will no doubt trigger a domino effect among other end users and the much anticipated bidding wars start for the cream of the crop.
Now couple this scenario happening with the huge short positions that are currently against MCP, RES, AVL & QRM. These shorts will obviously need to be covered and quickly. The short covering will be like adding rocket fuel to the share price escalation of these leading REE companies. Where they end up may be astounding.
So like the subject line states...''Our Time Is Soon To Come...''