NEW YORK ( TheStreet) -- Shares of rare-earth, strategic stocks were trading in mixed territory as the broader indices strengthened amid a good start to the earnings season led by better-than-expected fourth-quarter report from Alcoa. (AA)
Rare Element Resources (REE) is rising 2% Tuesday to $15.75. On Monday the company reported what it said it believed to be promising data derived from a drilling program at its Bear Lodge property northeastern Wyoming. "The assay results continue to demonstrate the continuity of the mineralized bodies at the Bull Hill SW resource area," the company's vice president of exploration Jim Clark said in a prepared statement. "Results from the 2010 drill program should allow us to expand the limits of the deposit and upgrade the resource category in our next .... compliant resource estimate." Clark expects that the next estimate will be completed early in the second quarter of 2011.Molycorp (MCP) was falling 1.1% to $54.01. Forbes reports that private equity firm Resource Capital has not made any returns yet from its $110 million investment in Molycorp., though the investment continues to look compelling given that the it's now worth about $1.5 billion based on the Molycorp's recent stock price. Molycorp recently announced that it has secured the last of several environmental permits necessary to begin construction of a new rare-earth manufacturing facility at Mountain Pass, Calif. The company said it was a major milestone for Molycorp's $531 million project to construct a complete rare-earth mine-to-magnets manufacturing supply chain in the U.S. General Moly (GMO) is jumping 7.6% to $6.40. The stock has climbed by more than 9% since late December, when it was announced that China would be increasing caps on exports of rare-earth metals. Lynas (LYSCF.PK) is falling 5.2% to $2.01. In its most recent update on the project, Lynas said that its Concentration Plant at Mount Weld, Western Australia is due to begin operating in February, 2011, despite some pre-launch delays that the company had been addressing, and that its Lynas Advanced Materials Plant (LAMP) in Malaysia remains on schedule for its first production of rare-earth materials in the third quarter of 2011. Avalon Rare Metals (AVL) was higher by 0.6% to $6.756 in Tuesday trading. Last week the stock took a dip after it was lowered to hold from buy by Laurentian Bank. Although many of these companies have yet to begin producing rare-earth elements, the belief that investors have in the potential of these companies to eventually cash in on the value of these materials when applied to technologies used in oil refining, batteries, TVs and military applications, magnets and more is palpable.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV