This is a MUST READ:
WARNING to all rare earth SUCKERS: for the past three years, the big media rare earth PUMP SHILLS serving the rare earth CALL WRITERS at the slimy banks and funds have NEVER NEVER NEVER NEVER been the least bit correct in ALL their BOGUS pumps!!!!
The Bloomberg rare earth PUMP article is a huge hoax and every smarter pro trader knows it, even if the retail baggies can NEVER figure out the obvious
i fully agree! Sometimes the laziness of so-called fund managers astounds me! They specialize in the low lying fruit and their inability to see the future baffles any sane person. Closed at $2.50 today yet Rare Element Resources (REE) with NO mine, NO nothing but a pipe dream closed at $1.20? What's wrong with this picture? It sickens me to see such massive ignorance on mcp, a joke!!
Here is an analogy that frames the dichotomy you see.
If a person does not own a house and gets hit by the 2008 housing bubble, he cannot lose his house. Whatever resources he has can be preserved for a future house purchase.
If another person owns a house and gets hit by the 2008 housing bubble, he can lose his house. Whatever money he has in the house can vanish.
MCP has Mt. Pass built out. It is consuming cash and danger lurks. The owners (shareholders) can lose all they own, and probably will. The shareholders of REE will retain their ownership as their cash burn is not fatal.
The market is saying the future of REE may be very good. But the here and now (MCP) is very bad.
IMO, the article is very bullish. If they are right about demand for $12B in new mines, it means prices must rise very sharply. I think we have learned that developing a mine and refinery takes years and costs $billions. During that time, Molycorp would be reaping $billions. I think there are too many who think this is as easy as duplicating software.
I agree. The only question remaining is whether they will have enough cash as they ramp up over the next nine months. Prices are slowly going up. It will be tight but my money is on MCP and its rich insiders to make it through and make me money. Having patience is not easy however.
The Bloomberg article is indeed very bullish on the RE sector. But the market reacted poorly to the news - very odd. Investors should take heed on this 'tell' as it truly describes what the market thinks about MCP. In a word, the market thinks MCP sucks at this point in time. Sentiment may be different once MCP demonstrates a stable operation and financial base. The Bloomberg news is just a rehash of 2010. The Chinese did nothing then; what will compel them to do something now? There is probably more illegal exports now than back then.
I believe the market is telling MCP to do the secondary or BK soon.