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O B Research
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International investor of Swedish origin currently living in Budapest, Hungary. Specialized in the resource sector and value plays.
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O B Research
  • Rare Earth investing fundamentals 0 comments
    May 22, 2011 3:15 AM | about stocks: LYSCF, LYSDYIQ, MLYFF, ANLKY

    Most investors look at rare earth metals as a group which is a very very flawed way of looking at this market and most likely reason to quite serious future losses.

    Some investors have gained some further knowledge and talk about light and heavy rare earths and realize that the fundamentals for these two groups are different. That is still a somewhat flawed way of looking at thing because not all light REE´s have bad fundamentals and not all heavy REE's have great growth prospects.

    So let us simply choose the two REE's that has the best fundamentals and learn about them and even better, invest in them while we skip things like Lanthanum and Cerium that has a high risk of seeing sharply lower prices if companies like Molycorp and Lynas are successful.

    Rather than writing it all again I will post a link to our blog where google translator does a fairly good job translating it from Swedish to English.

    As a disclosure I should mention that we own close to 5% of V.DSM in Canada which is our preferred way to invest directly in Terbium and Dysprosium while staying away from the Lanthanum & Cerium companies called Molycorp and Lynas and the juniors that are so many years away from MAYBE being able to produce Terbium & Dysprosium in a market that is in serious deficit right NOW.


    The blog translated to English: translate.google.com/translate

    The blog in Swedish: http://www.ob-research.com/node/890

    The last NAV of the Dysprosium & Terbium company Dacha Strategic Metals was 71 cents but it moves up every month and with the latest increase of international Ferrodysprosium prices that should now be 77 cents and could surpass 80 cents since the domestic prices of terbium oxide is now much higher than the international ones which should play catch up the coming week.

    Since we are new posters to Seeking Alpha there might be some technical issues with my posting and you should of course know that English is not our native language and we therefore apologize for the spelling... 

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