RARE EARTH? HYPE OR THE REAL DEAL?

RARE EARTH METALS -

I haven't received any emails about these yet, but I fully expect to start getting them if MCP rips off another monster day.

I watch about six or seven of these firms daily including a few of the ETFs that have recently been released.  I have not held a position in these, and don't really intend to as of this writing.

Yes, the rare earth metals firms are shooting higher, but that doesn't mean that we need to board that train.  Especially don't pull the trigger and buy MCP!  Look at its revenues!  Look at its market cap!  This company is now valued at $5 Billion and has revenues as of September 2010 quarter end of $15 million!  While it isn't quite Facebook, it certainly is an internet valuation.

Ok, enough said, do your own homework, but I find it very hard to believe that that is the best choice out there.  Could rare earth miners be a good investment?  Yes---- last month and last year.  I'm not so sure about two years from now.

Flip through these slides for a little more information. Essentially what they are saying is that China has a monopoly on these now, but longer term prices will come down as their grip on supply will lessen.




http://www.http//www.businessinsider.com/what-the-rare-earth-bulls-dont-want-you-to-realize-2011-1#chinas-monopoly-is-fragile-1

Be Careful!

GOATMUG