Midas likes Rare Earth Minerals (REM)
After being battered by the markets for no particular reason in recent days (i.e. down around 40% !) REM got a welcome boost today in the form of a recommendation by well-respected and widely-followed analyst Midas in the Daily Mail.
REM is into lithium producing, amongst other things, and has a mine in Mexico. Lithium is going to be increasingly important in the future and Midas even mentions the possibility of a link-up between REM and Elon Musk's gigafactory in Nevada (possibly even relatively soon).
a tieup between Tesla and Rare Earth would make sense. And some canny observers believe such an agreement might happen relatively soon.
early indications suggest REM's mine could yield significantly more than 3.3 million tons of lithium. The group is also planning and designing its production plant, which is due to be up and running in 2017, with annual production of at least 50,000 tons.
Here is REM's 6 month chart that shows the unwarranted damage done in recent days and the partial bounce back after the Midas article was published.
The Midas effect may fade or it may not, so just what price is a good price at the moment is difficult to say. It will also depend in part on what the markets decide to do this week - is the 'correction' over or is there more to come? The DOW right now (Monday 20 October pm) is down 92 points, but apparently the drop in IBM accounts for 85 of those points.
Midas' verdict however about REM is pretty clearMidas verdict: Rare Earth Minerals is a true penny share and it has been buffeted by weak market sentiment over the past few days. The long-term outlook is sound however.
At 1p, this is an attractive prospect for the adventurous investor.