Will the success of the secondary C$50M help or hurt?
Hey perhaps it appears worthless on the surface by people like us. Let not forget that this stock has been written about all over the place. So why, just why is it trading at $10 with a $350 million market cap? Yes there are a lot smarter people out there than you and I buying this stock. I would like to know what they all know that we don't? Something tells me there is much more to this story or else we would be trading right back down at $1.
Nonsense. All stock prices are the sum total of the balance of the market supply and demand. By definition, the market has no central intelligence to it.
History is riddled with bubbles where "someone knew something" and then the stock crashed. From the tulip bubble several hundred years ago to the dot com bubble of 2000. For a period of time, the market "knew" all kinds of dot com IPO and new issue stocks were worth infinitely more than what they should have or would ever be worth. 95% of them are nothing but memory now.
And just as then, within a few months, when the market realizes the electric car and the wind generator market don't actually solve the energy or pollution issues, which the REE market is a very small subset of and much dependent on, all RE stocks will crash.
Since REE has never actually mined, let alone sold, any RE's and wouldn't for 5 to 10 years, it will be one of the first to fall to penny stock level. It will do some reverse splits to bring in more bagholders and then it will return once again to penny stock status after bilking $100M or so from bagholders who will claim the stock market is rigged. The market will continue to do this as long as there are enough gullible bagholders, who think there is some magic knowledge to stocks "that appear worthless on the surface", to support it.
That's why there are no shares in REE to short. The Goldman Sachs of the market have shorted all there is to short. GS is the only exception when it comes to "knowing something".
Agree with all comments re. REE but not with your blanket comments regarding all ree miners. For example, Lynas (LYSCF) already is a miner or same and already has lined up markets for 70% of the products of its own refinery under long-term contracts when they begin flowing before this time next year. This is a real, rare earth company now on its way to annual production of 33,000 tons and it is naive and incorrect to clump it along with a pretend miner such as REE, a pure hype and hope ree "company".