Australian rare earth Lynas Corp. (PINK:LYSCF) is making major headlines as China looks to control its supply of the rare earth market which represents roughly 95 percent of the global demand. Lynas engages in the exploration and development of rare earths deposits and mineral resources.
Lynas is headquartered in Sydney, Australia and trades on the Australian Securities Exchange as (ASX:LYC). Here in the United States, as mentioned above, Lynas trades at (PINK:LYSCF). The market cap on Lynas is right in my wheel house at $1.87 billion so don’t let the U.S. listing throw you off, this company is the real deal and you could compare it to U.S. based Rare Element Resources (AMEX:REE) and Molycorp (NYSE:MCP). As a trader, the implication of the foreign exchange is you go to bed and if (ASX:LYC) was up overnight on the Australian Exchange then you can count on a great day for the U.S. listing (PINK:LYSCF). I’m sending this alert now because I think tomorrow is that day.
Pull up the charts on MCP and REE if you want examples of why I think LYSCF will start to head back up tomorrow and could be on its way to $1.50 and if we’re lucky and some really bad news comes out of China, $1.70’s. Currently I’m holding 40,000 shares of LYSCF which I’ve been accumulating over the last week at an average of $1.23. From today’s price of $1.18 I think LYSCF has about 30% to the upside before slowing down which is where I’ll start to assess my position.
As a swing trader I’m looking for 10% wins across 1-20 days rinse and repeat. So keep LYSCF on your radar because I think it could deliver a slow and steady winner over the next few weeks.