Time to Dig In to Rare Earth Stocks
By Helen Burnett-Nichols
NEW YORK (Minyanville) - Rare earth stocks have had a difficult 2012 so far, but there may still be a few bright spots for investors in the sector, with possible M&A and joint ventures on the horizon, says one analyst.
Luisa Moreno, an analyst at Jacob Securities in Toronto, explains that performance-wise, rare earth equities have been following the global trend for commodity equities across the board.
For example, the Market Vectors Rare Earth/Strategic Metals ETF (REMX) is down just over 10% this year (as of June 13), while Molycorp (MCP) is down 16% year to date, after a 47% tumble in 2011. Avalon Rare Metals (AVL) has fallen more than 40% in 2012 after a 47% drop in 2011.
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