Commodities & Metals

A Strange Rare Earth Segment Move... Opportunity or Trap? (MCP, REE, AVL, REMX)

The trend from rare earth moves usually seems to be like a China-regulatory move, but that is not the case today.  We have an emerging player which has delayed a feasibility study and another instance where a 10% increase and a 61% increase in certain rare earth minerals.

Avalon Rare Metals Inc. (AMEX: AVL) is seeing its shares really hit hard after providing an update on the Nechalacho Project with an indication that the feasibility study is now targeted for completion in the second quarter of calendar 2013.  That is a significant push out and time for Avalon to burn cash.  As you would expect, the drop is rather large and it is down 26.7% at $1.62 on almost 3-times normal volume.

Rare Element Resources Ltd. (AMEX: REE) is lower by 6% after news on Monday that it saw a 10% increase of M & I rare-earth mineral resources as well as a 61% increase of oxide and oxide-carbonate inferred mineral resources.  At $4.46, the 52-week range is $3.08 to $13.48.

Molycorp, Inc. (NYSE: MCP) is down with the weaker metals and a weaker growth story, but the rest of the sector woes may be the real culprit here.  Shares are down 4.1% at $25.07 agsinst a 52-week range of $23.05 to $71.43.

The last of the real rare-earth trades in the U.S. is the Market Vectors Rare Earth/Strategic Metals ETF (AMEX: REMX) and it is down 4.5% at $14.65 in active trading for this ETF.

Nothing new really out of China on this front, just relative weakness and problems impacting valuations.

JON C. OGG

The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)

If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.

But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.

Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.

1 https://www.fdic.gov/national-rates-and-rate-caps

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.

AI Portfolio

Discover Our Top AI Stocks

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

You can follow him investing $500,000 of his own money on our top AI stocks for free.