Critical ElementsIt is not very often that I will care too much about the fundamentals of a company as I have found in my 20 years of trading stocks that fundamentals typically disappoint and do not make for profitable investments. (ok, this is not a post about fundamentals vs technicals, just my personal thoughts and experiences).
But in this particular sector at this particular time in the world, on a daily basis, rare earth elements and their shortage in the not too distance future come up in articles from all over the world constantly.
I noticed on this page as I was reading through the posts how Focus Metals is giving the public their stats on REE's and cannot help but come to the conclusion that in order for the global economy to continue in the path we have taken, re: cell phones, electric cars, etc, etc...we will soon run out of this critical elements, which will cause a serious demand from those both inside and outside of China.
I was a very active trader during the tech boom and turned $20,000 into a million within 6 months...I also lost about $800,000 the following 6 months on the drop...can laugh about it now, but still, it was because all the ducks were lined up for such an explosive event.
Imo, the ducks are lined up for this sector and what we have in this company with proven 6 billion in the ground, a recalc that should take it to 8 to 10 billion and a market cap right now of 110 million, has turned me into a more long term investor in this play and sector where the rewards over the next 2 - 5 years, should be exponential.
I have been a buyer once again when the stock hit .20 and have decided to add to my position on any opportunities below this mark while we wade through the last of Joe's shares.
I find opportunity knocks every few years in the stock market, and you have to be there before everyone else is, so that once everyone else and their mothers are promoting your sector, you are comfortably unloading your positiion for the next opportunity.
This has always been a great board for discussion, and I will leave the fundamentals to those with that expertise and continue with my TA.
So on that note, as stated before and confirmed by Krazy's excellent chart skills, this stock is within months of a solid turnaround and some nice gains going forward.
On that same note, I would personally like to thank Joe for providing me the opportunity to not only trade this play, but to now purchase shares for a longer term investment at what I consider an incredible entry point.
Happy Trading all,
Mediascan