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Unrest in the Middle East, the European debt crisis and the rising global economy will put pressure on commodity prices. Rare earth stocks, vanadium miners and related Chinese miners have been in a correction since their run up late last year. Molycorp (NYSE:MCP) fell from $62 to $45 earlier this month and is now at $53. Rare Earth Recourses (NYSEMKT:REE) fell from $16 to $12 and is now at $14.50. Qiao Xing Universal Resources (XING) fell from $3.50 to $2.50 and is now at $2.70. China GengSheng Minerals (NYSEMKT:CHGS) fell from $5 to $2.70 and $3.47. And China Shen Zhou Mining & Resources (NYSEMKT:SHZ) fell from $10 to $6 and is now $6.50.

Demand is real. The hoopla started with the news that China is going to limit export of vanadium and rare earth metals. For rare earths, one of their key applications is in military missiles and defense systems. The idea that the government will cut back on missiles and defense systems just because the minerals cost too much is nonsense. If the government needs more money, they will get it one way or another. One of their chief duties is to protect the people, so cutting defense spending is not a viable option. But more importantly, the rise of “green” technology will keep demand up. One windmill takes a ton of rare earths. Each wind farm has over 100 wind mills. For vanadium, the mineral is used in ceramics, radiation-protective coating, and nuclear reactors.

Below is a list of those five companies and statistics from Yahoo Finance.

G%

year over year revenue quarterly growth (%)

P/B

price/book

tPE

trailing PE ratio

PEG

price/earnings/growth

fPE

forward PE ratio

R/S

revenue/share

P/S

price/sales

%

% short

Price

G%

tPE

fPE

P/S

P/B

PEG

R/S

%

CHGS

$3.47

12.20

25.90

13.35

1.29

1.44

0.56

$2.43

8.0

MCP

$53.25

--

--

--

260

8.9

--

$0.30

19

REE

$14.50

--

--

--

--

21.3

--

--

12

SHZ

$6.56

111.0

22.62

--

20.5

6.70

--

$0.27

31

XING

$2.71

--

58.91

--

1.19

0.45

$2.30

4.1

The chart shows that MCP is about 3.5 times cheaper than REE based on P/B, but XING in the cheapest of them all.

Below is a collection of graphs.

(Click to enlarge)

(Click to enarlge)

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(Click to enlarge)

Top black line in each technical graph is overbought territory and the bottom black line is oversold territory.

Most of these graphs look the same. MCP’s graph concerns me due to the spike in the W%R. REE could be up for another run. And actually, SHZ’s graph look better than that of XING. But all or most of these stocks seem good buys.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Five Rare Earth and Vanadium Stocks That Seem Ready for Another Run