Rare Earth Elements (REEs) Are Bubble Like Uranium in 2007
The only economic study that was done on USA Rare Earth (USAR)'s Round Top deposit was in 2014 it was a PEA and the after-tax Net Present Value (NPV) was US$1.18 billion and USAR only owns 80% of it so their portion is worth US$944 million. The current market cap of USAR is US$3.9 billion.
Most of our gold stock suggestions are still trading for 1/10th of after-tax NPVs but USAR is trading for 4.13x above its after-tax NPV. Other rare earth stocks have similar valuations that make no sense.
We refuse to suggest a REE stock to capitalize on Trump hype unless there was a REE stock of equal quality to our gold stock suggestions at a similar low valuation and we aren't aware of any.
Rather than jumping on the hot trend of the moment we like looking for the trend of the future and believe it's smart to capitalize on the imminent boom in AI datacenters, EVs, and industrial automation in hotels, restaurants, and factories across Asia.
The rally for foreign stocks in countries like Singapore, Malaysia, Thailand, etc… where Trio-Tech International (TRT) is positioned favorably hasn't yet begun.
TRT with its tiny float means when it finally gets discovered it could run to $50 per share extremely fast.
But even if we are wrong… it is almost guaranteed that TRT will rise to an enterprise value of at least 1x revenue in an absolute worst-case scenario, which would equal $12.97 per share. If it gets to 1x revenue or $12.97 per share it would have surpassed its key breakout point of $11.70 per share and by then everybody will be jumping into the momentum and driving it to new all-time highs of above $25 per share and then maybe it becomes a bubble and goes to $50-$100 per share.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is meant for informational and educational purposes only and does not provide investment advice.
