Rare earths

Like a complement of the post about commodities I've done the last days today I will talk about the rare earth. With this name I call a lot of very special minerals and elements that are uncommon and there very few mining of them around the gold.

They came to the economic news since last year China (the main producer and the main user too) decide to restrict the exports. Some of them are very useful in the last technologies like smart phones.

Although there are no futures of any of them we can invest on them indirectly.

First of all we have an ETF (REMX) that invests in the main companies that are dedicated to the exploration, mining, production, refining, recycling and distribution of them. Note that not all the companies are listed; mainly in china; so are representative. Has a volume of 40000 shares at day. Not bad at all.

 

Second, we can invest in some of the companies directly. I've taken a look at some of them.

TIE – Makes titanium mill products. Has a PE of 26 times but with a growth on benefits of 30% every year. No debt and 2,5 b$ of capitalization. RTI is doing nearly the same but with poor prospect in my opinion.

TC – have mines of molybdenum more a new one constructing of copper/gold. PE of 10 times but with the new mines can have more benefits. We will see.

MCP – Has a big project of molybdenum on developing. The estimates are an 8$ benefit for share in 2013. Has 0,3b$ of debt and 2b$ of capitalization.

 

Graphically the best is TC, which is going up after making a round bottom of 3-4 months. The rest, include the ETF are weak and we must wait for a confirmation figure.