In Monday’s comments Prescient11 was good enough to list his favourite rare metals stocks and invite me to comment. Never one to miss a chance to embarrass myself in the cause of entertaining others I am only to pleased to oblige. Pres. wrote: My tops are: QRM, RES, AVL, TSM. My secondary’s are: GWG, UCU, DAC, LYC, ALK I would love to know your thoughts on the various projects and who you thought stood a snowball's chance in hell in making this work. But first I better put up a couple of qualifications.
No one can see the future, even though many on Wall Street and in the City of London charge big fees pretending that they do. I have no crystal ball, just years of trading and following markets, good times and bad. During my 40+ years following markets, technology changed, and our world globalised as never before. We went through boom, bust, boom, bust, and stand today at the start of a historic transfer of economic power from west to east. While I think I have a legitimate experience level to draw upon to give informed comment, in no way should anyone rely on my writing and comments as the basis of making an investment decision in rare metals stocks. No one has more at risk in an investment, than you do yourself once you commit to an investment and it is critical to conduct in depth due diligence before risking hard earned cash.
There is rarely if ever a need to rush into making and investment decision. Marry in haste repent at leisure still works for stocks, if not any longer elsewhere. One other caveat. I do not get paid by any of the firms listed nor do I (yet) hold a position in any. Though that could change at any time.
Prescient listed Quest Rare Minerals, Rare Element Resources, Avalon Rare Metals, Tasman Metals, with secondary’s, Great Western Minerals, Ucore Rare Metals, Dacha Capital Inc., Lynas Corporation Ltd, and Alkane Resources. So let me put them in placement order to how I see things from London. My order of preference:
GWG, LYC, TSM, UCU, QRM, AVL, RES, ALK. Not rated by me, Dacha Capital Inc., but only because I’m not sold on the wisdom of investing in the private stockpiling of physical rare metals. I would prefer a sector mutual fund of companies engaged in the rare metals exploration and production.
Don’t get me wrong, all or any of the companies listed could succeed or fail. If the management really messed up, or if substitution ruined their best laid plans of mice and men, it’s all too easy to fail. If they can finance their plans easily and carry them through on something close to the current timetables they succeed. Tomorrow, I’ll start explaining my logic behind my ranking. Up first, GWG, LYC, TSM, and UCU.
Graeme Irvine. London.