This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Rare Earth Stocks To Watch In 2013

Ucore Rare Metals (TSXV:UCU) is a junior explorer looking for rare earth deposits in North America, and is primarily focused on its Bokan-Dotson Ridge REE property in Alaska.

Why this stock is appealing: With the majority of REE projects still a long way from production, Ucore has stated that its Bokan deposit — the largest heavy rare earth element (HREE) project in the United States — is targeting production in the near term. Bokan is one of only a handful of non-Chinese HREE deposits capable of attaining production within the next three to four years, according to the company.

In November, Ucore released a preliminary economic assessment for the project that shows a net present value of $577 million and an internal rate of return of 43 percent — impressive economics in a struggling market environment.

Investors also began to take note earlier this year, when the company announced that the US Department of Defense (DOD) signed a contract to conduct a mineralogical and metallurgical study on Bokan. The DOD is hands down one of the world's most attractive global customers for HREEs.

While Ucore is actively discussing offtake partner agreements with a number of American industrial manufacturers, the DOD alone could be a significant consumer of the company's output. A partnership with the DOD would also eliminate a lot of the risk associated with this project — and would set Ucore apart from its competitors.

While the company performed well in 2012′s negative market environment, it still holds massive upside potential in the medium to long term. Ucore has 152,633,403 shares outstanding and a market capitalization of $74.79 million. The company's shares are currently priced at 50 cents, well above its 52-week low of 22 cents and well below its one-year high of 64 cents.

Matamec Explorations (TSXV:MAT) is a junior exploration company whose main focus is its Kipawa deposit in Quebec. Most of the Kipawa deposit's value is in five critical REEs, including dysprosium and terbium, which are indispensable in green technology applications.

Why this stock is appealing: This undervalued firm boasts a high-quality project, an already-established customer base and near-term production goals. Its flagship project has projected revenue of $2.8 billion, a before-tax payback period of only 2.4 years and a mine life of approximately 13 years.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs