Shares of rare earth companies like Rare Element Res Ltd (AMEX:REE), Molycorp, Inc (NYSE:MCP), Avalon Rare Metals (AMEX:AVL) and China Shen Zhou Mining & Resources, Inc. (AMEX:SHZ) soared today on the misguided and foolish introduction of the so-called Rare Earth Supply-Chain Technology and Resource Transformation (RESTART) Act of 2011, by Colorado Congressman Mike Coffman.
The incredibly stupid bill would create another government department with the high cost that accompanies it, under the guise of the "dangerous" Chinese because they're not exporting as much of their rare earths as they have in the past.
Look at the destruction the government has already put on the people, as it refuses to cut back on unsustainable programs and spending which are bringing the country to the brink of destruction.
Some idiots are even spinning this as a national security threat, the usual ploy to expand government and the spending that ensues.
The idea that these companies need anything from the government is ridiculous. They're already moving to growing and expanding in response to the growing demand for rare earths.
What this is probably really all about is rare earths serve other government boondoggles like the so-called green energy areas like solar and electric cars, which will obviously be held back if there are shortages of supply.
Of course rare earths are important for legitimate industries like mobile phones; something there is real consumer demand for.
Molycorp closed at $68.45, gaining $6.39, or 10.30 percent. Rare Element Resources closed at $15.30, up $2.16, or 16.44 percent. Avalon closed the session at $9.52, rising $0.83, or 9.55 percent. China Shen Zhou Mining & Resources, Inc. closed at $5.40, up $0.67, or 14.16 percent.
Friday, April 8, 2011
Molycorp (MCP) (REE) (AVL) (SHZ) Soar on Disastrous Rare Earths Bill
Subscribe to:
Post Comments (Atom)
2 comments:
Your the idiot Gary! Ensuring that the U.S. maintains the capability to acquire and maintain a certain % of important materials and processes (i.e. Steel creation as well) is just plain common sense. Even if it requires some goverment oversight and costs. It will also help creat jobs here. Me thinks you have shyster alterior motives to drive people away from rare metals toward your overhyped precious gold sales. Tsk, tsk!
An unfortunate analysis, Gary. Congressman Coffman's bill keeps rare earth for crucial American usage (i.e. military missiles) and creates further world demand otherwise, RAISING value of such a limited resource. Sounds like your shorts are in a wedgie. Save yourself, man. Get out now.
Post a Comment