Good Afternoon all,
It is another lovely GRAY day in the pacific northwest. The kind of flat gray that drives the sun poeple nuts. Me, I have gotten used to it and kind like it. Easier on the old eyes, glare and brite sunlight and me don't get along. Still have the nagging cough leftover from the sinus infection but it is getting better.
Okay, is Ucore is a very good buy at this time? For most folks I would say no. Still to much risk. For the folks the can handle the risk a strong maybe, depending on the person. For the long time holders of the stock, like most of us on this board. It is stand pat and see if our investment pays off big time.
Ucore biggest problem is not anything that Ucore can do anything about. The average investor understand a mining company and can understand magnet manufacturer but few understand what Ucore is doing. An investor would have to go looking for the that information to really understand it. Because most have never heard of a tech company that makes oxides to spec from concertrate. They don't understand that separation is a choke point in the supply chain and Ucore is trying to fill in the void. If you look at most news articles they don't give you any hard data on separation. Maybe a few lines but nothing that realy tell how importent it is. So the only thing that would tell the average investor that is a buy is funding.
So what do we know about funding for sure. We know that there is ten million in the second half of the four million award that Ucore is working on right now. They get to a milestone and that kick in. Get started money while Ucore applys for more grants from DOD. We know from Pat's latest video that of the three OEMs that in talks with Ucore one are in final talks with Ucore. With the lawyers send contract drafts back and forth doing the red line thing that lawyers do. How much the upfront money on that is unknown but could be big. We known that Ucore has the building in LA for at least 20 years to 99 years. With the first two years at very low cost to Ucore. We know from the market herald that Ucore has three suppliers of REES concertrate lined up.
https://stockhouse.com/news/the-market-herald-news/2024/01/04/undervalued-rare-earth-elements-stock-acquires-processing-facility Now me, I am in a good spot and can wait a long time for my Ucore investment to pay off. I will wait until I known how Pat and board are going to pay the investors with dividends or stock splits. Then will sell as I need the money. Last of the house mortgage. A new car for the wife. The trip down under to New Zealand. Other that that I would sit on it. The rest of long holders have to decide where your sell point is. Remember we are at the begining of a five year build out of the industrial plant in the US as jobs and industry come home from oversea. REEs will be in the middle of all that and very much increasing demand. If Peter Zeiham is right and China goes off, Ucore would be the only supplier for the world. Lot of demand, very limited supply, huge price jumps.
Dragon