China Puts the Squeeze on Rare Earth Metals: Top Rare Earth Stocks

China, producer of 95 percent of the world's rare earth metals, is cutting way
back on the production of these elements by nationalizing and shutting down the
producers. China's excuse is reducing pollution, but the extended consequence is
higher prices on fluorescent light bulbs . Rare earth metals, also known as rare
earth minerals or rare earth elements, are used for such applications as
superconductors, magnets, electronic polishers, car batteries, luminescent
materials, lasers, optical-fiber communication systems, welding, night vision
goggles, rangefinders, and radar. The rare earth metals include: Scandium
Yttrium Lanthanum Cerium Praseodymium Neodymium Promethium Samarium Europium
Gadolinium Terbium Dysprosium Holmium Erbium Thulium Ytterbium Lutetium Other
metals and elements are often (incorrectly) referred to as rare earth metals
such as lithium and manganese. However, many of the companies involved in the
mining of the rare earth metals are also involved in mining some of the other
scarce elements. Rare Element Resources Ltd. (REE) is a Vancouver, Canada based
company involved in the exploration and development of rare earth mineral and
gold properties mostly in Canada and the United States. The company, which was
founded in 1999, is debt-free with 1.68 in cash per share. However, it has
recently generated negative earnings. Another example is Molycorp, Inc. (MCP),
another company involved in the rare earth industry, based in Greenwood Village,
Colorado. The company has $200 million in debt, and over $680 million in cash,
with $8.11 in cash per share. The stock trades at 13 times forward earnings. Neo
Material Technologies, Inc. (NEM.TO) (NEMFF.PK), is a processor of rare earth
metals, and trades on both the Pink Sheets and the Toronto Stock Exchange. This
Toronto, Ontario based company processes rare earths, magnetic powders, and
other metals. The company distributes cerium, lanthanum, europium, neodymium,
dysprosium, yttrium, and other materials. The stock has a price to earnings
ratio of 9 with a forward PE of 6. It also has an extremely favorable price
earnings growth ratio of 0.33. Earnings for the latest quarter were up an
incredible 229% on a 172% revenue increase. A more conservative and diversified
approach to rare earth investing is through the Market Vectors Rare
Earths/Strategic Metals Exchange Traded Fund (REMX). To see a free list of over
25 rare earth metals stocks , which can be downloaded, sorted, and updated, go
to WallStreetNewsNetwork.com. This site also has a list of lithium stocks, which
are not technically rare earth stocks, by are often included in the same
investment arena. Disclosure: Author did not own any of the above at the time
the article was written. By Stockerblog.com