“There are two ways to live: you can live as if nothing is a miracle; you can live as if everything is a miracle.” — Albert Einstein
Preparing research and market analysis for the Critical & Rare Metals Summit in DC this week, and specifically for the panel on Equity and Investment Banking Perspectives some impressive conclusions stood out that I will treat as a 'miracle' to kick your Monday off right. Afterall, how do you explain a 'boutique' investment sector that rises from a $2 to $8 billion market cap – 256% in less than 1 year?
Created via a sample sector analysis (*estimate), we used all of the RareMetalBlog sponsors, plus a few additional companies that we deem pertinent players in the REE sector and represented in www.raremetalstock.com.
Let's just say, that if you had bought all of these companies in January, held constant; your portfolio would be up 64%. So for all of the newsletter writers espousing brilliance in the marketplace — anyone can be a rockstar in a bull market.
Here's a quick overview of the conclusions (Brian Bugg, CFA):
- Total Market Cap Change Since December 2009: 256%
Biggest driving factor was Molycorp’s public offering, next was price appreciation of the shares and we noted that new share issuance had a minor impact (appreciation of the CA$ against the US$ had a minimal impact with a 2.5% appreciation: sample spreadsheet was done in currency of primary market listing, market cap totals were figured in US$)
- Market Cap Increase excluding Molycorp: 148%
- Price Appreciation: 64%
Adjusting for Molycorp, New Share Issuance, and Currency value
Stay tuned…will be blogging from DC tomorrow and Wednesday.
Disclaimer: Outstanding share numbers* were taken from annual reports, but where unavailable we used www.bigcharts.com and www.yahoofinance.com towards calculating the market cap. This is meant to be a sample indicator and special thanks to Brian Bugg, CFA who compiled his data.