Trump whacking a 10% tariff on all Chinese goods & services will DEFINITELY illicit a strong response from the Chinese. I expect them to reduce rare earth supplies to really inflict some pain on the Americans.
Great news for Lynas on two fronts:
1) Rare earth prices will sky rocket, and Lynas will be generating massive cash flow/revenue & profits; and
2) Approval for Lyans' Texas REE processing plant will be pushed through as a matter of urgency as the Pentagon becomes desperate to be able to source critical rare earths for U.S military equipment.
I fully expect to see Lynas back up around $8 a share in the next few months.
LYC Price at posting:
$6.41 Sentiment: Buy Disclosure: Held
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