Apple news of Jobs taking an indefinite medical leave will rock the markets tomorrow. Risk is going to be taken off aggressively. Puff jobs like REE and AVL should be down 20% as investors look to reduce risk.
Both REE and AVL are nothing more than silly pipe dreams. REE will NEVER have a viable business. It is a penny stock SCAM. I am shocked that REE is still above $5. This will be taken care of this week. Look for REE to be near $9 before close of the week.
AVL is another joke. AVL's "resource" requires underground mining (3x more expensive that open pit) and in the best scenario will not have revenue (if ever) before 2016.
With the Molycorp lockup expiring on Jan 25, look for MCP to drop 20% - 30% as the private equity investors exit their positions.
This is going to be a TERRIBLE week to be long the rare earth companies.
Dude...why does anyone think that REE is worth more than 15 cents a share. Shell companies sell for about $600K. I would guess that REE has about $5M in cash left.
Sounds like $0.15/share is the right target price!!
Agreed and I while REE will be down, I can't imagine where it will end up. I hear a lot of people saying 9 or 10, but technically speaking, if it gets to 9 or 10, what's to stop it from going to 5 or below? I mean, if there aren't offers, and market sells are sent, this could go to $1. But hey, it could also go to 22 so what do I know. I hate to see anyone lose, but this is shaping up to be one of those disaster stories for longs. Don't lose it all!!!
It seems that we will see the well-positioned rare earth companies (Molycorp and Lynas) do well after Molycorp takes a hit from the lock-up relsease. But the rest of these pretenders will die on the vine.
Seriously....how many times have we seen this movie? We all know how it ends. Once the hype bubble pops (it has already), the weak companies that have poor financial prospects (REE, AVL, SHZ, CHGS, etc.) will get crushed...most down 80%+.
I agree with everyone in this thread. Get short if you can get a borrow...or sell calls and use that money to buy puts.
We could see REE fall 3 - 5 points in a single day.
I think REE is literally worth zero, but I see REE returning to $5 before mid-February.
Who can say what will happen with REE. There seems to be an abundance of Greater Fools despite the fact that this probably will be proven to be a shell company--doesn't seem to matter to most. The question is, who will not be able to find an empty chair when the music stops! LOL
Correct that this will be terrible week for MCP, REE and AVL and their long overdue collapse continues. AND A GREAT WEEK TO PICK UP THE REAL REE COMPANIES--LYSCF/LYSDY, ARAFF AND ALKEF. All still are undervalued and will be producing by 2013 (LYSCF/LYSDY in just months!--THE SO-CALLED FIRST WAVE REE MINERS--forget all miners not in production by 2013). Any unjustified and sympathetic move down in these three should be viewed as a buying opportunity AS THEIR STORIES ARE VERY REAL AS IS THE INCREASINGLY DIRE GLOBAL SUPPLY SITUATION FOR RARE EARTHS!
The rare earth companies are going to get smoked this week.
Best strategy....sell Jan calls and buy Jan puts. Easy money!!!
These companies should be down 30%+ this week.
Target prices for Friday's close...