Value.able: Rare earths
The prices of rare earths have rise, but share prices of the producers have fallen. What’s the bigger picture? Read Roger’s article at www.eurekareport.com.au.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
This post was contributed by a representative of Montgomery Investment Management Pty Limited (AFSL No. 354564). The principal purpose of this post is to provide factual information and not provide financial product advice. Additionally, the information provided is not intended to provide any recommendation or opinion about any financial product. Any commentary and statements of opinion however may contain general advice only that is prepared without taking into account your personal objectives, financial circumstances or needs. Because of this, before acting on any of the information provided, you should always consider its appropriateness in light of your personal objectives, financial circumstances and needs and should consider seeking independent advice from a financial advisor if necessary before making any decisions. This post specifically excludes personal advice.
Gale
:
Roger
Thanks for another thought provoking heads-up. As you say, the “long-term dynamics” are attractive. Lynas (LYC) for instance ticks a number of boxes, such as competitive advantage/barriers to entry and I note its A4 MQR.
What makes the calculation of IV difficult though, for me at least, is uncertainty about actual pricing of rare earths and therefore reliability of future earnings estimates. Tim Treadgold has pointed out this issue and described the secretiveness surrounding pricing.
I’d be very interested in you views on this.
Best wishes, Gale
darrin
:
Hi Roger
Does Lynas tick the boxes for valu.able consideration?
cheers
darrin