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发帖数: 194 | 1 Rare Element Resources: Potential Short Opportunity
http://seekingalpha.com/article/231266-rare-element-resources-potential-short-opportunity
Turning our attention to the tiny Canadian speculative outfit, we could not
help but find the ticker amusing: REE. Sadly, we had immediate memories of
the pain Internet.com created near the top of the dot.com bubble. Rare
Element currently has a market cap of over $400 million. Their latest
financials show about $10 million of assets and zero revenues. They had $5
million of cash on balance sheet at their last filing. According to their
last 20-F, Rare Element has two full-time employees and five part-time
employees http://www.sec.gov/Archives/edgar/data/1419806/000105291810000005/rareelement20fra2jan1310s.htm. This "exploration and development" company has spent less than $7,000.00 over the past three years. The management team has put out a steady stream of press releases, but we have little doubt that these promotional releases will ultimately be irrelevant for Rare Element until we are much closer to the middle of the decade.
The name of the property where Rare Element is conducting its RE element
testing is Bear Lodge, located in the northeast corner of Wyoming. Spartacus
Capital, the predecessor company to Rare Elements, acquired the Bear Lodge
mine in 2002 for less than $1 million. The company expects production of the
plant to begin in 2015. According the Rare Elements own documents, over the
past 38 years, three highly sophisticated mining companies, MolyCorp, Hecla
Mining (HL), and Duval Corporation, owned and explored Bear Lodge for RE
elements. After 44 drill holes, none these sophisticated miners continued to
drill, all choosing to abandon their efforts and eat the sunk costs. We
believe one of the reasons is the low ore grade of Bear Lodge. According to
Rare Element's investor presentation, Bear Lodge has an ore grade of 3.5%,
less that half of MolyCorp's Mountain Pass (8.2%) and a third of Lynas'
Mount Weld (13.6%). Based on our research (we ask readers to conduct their
own research on this topic), this makes Bear Lodge's prospects for
successful operation extremely dependent on RE element prices staying at
existing levels. If our earlier assumption is correct (along with the
apparent conclusion of three highly sophisticated miners), and prices of RE
elements normalize, it will be uneconomical to mine Bear Lodge (assuming the
asset even possesses enough to participate in the future of this over
supplied market). So while many RE stocks have increased significantly on
higher RE prices, most, including Rare Elements, will never be in a position
to take advantage of today's prices. | u****s
发帖数: 372 | | k********n
发帖数: 18523 | 3 就跟03年的军火股票如出一辙。。。沾边的就暴涨
最后结果很多军工股早就寿终正寝了
谁还记得那个开发生产360度监视镜头的公司？股价从1刀多两周被操到30刀
CEO受cnbc interview..
结论：操操就行了high 就high了，千万别产生爱情 |
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