Rare earths will come back and when they do it will be exciting. Most of today’s companies will go bankrupt and it will be the companies that buy the resources for pennies on the dollar that will make it. Three months ago I was saying that Lynas was not likely to go bankrupt. With the latest plant problems. I no longer think this is true. They only have $125 mil in bank. If the current plant problems cost more than $25 mil to fix $50 max they will not make it without flushing current debt and stock holders. It is still worth watching but take your time there is no hurry to invest. Better to get back in at $0.75 or Even a $1.00 When things are more certain, than invest money at extremely high risk today. It takes along time to recover from a big loss. The best overall gain is obtained by those who have good gains and avoid the really big loses. I would rather have several 50% gainers than have one 400% gainer and a couple of wipe outs. The 4 banger is great for bar talk but it does not help much against a few big loses.
Note the last set of plant problems cost nearly $500 mil to fix and they only had to be applied to one plant now they have two.
Not only are you lying about not saying that Lynas would go bankrupt, you are a hypocrite for saying that I have recommended people buy Lynas in my posts (which I never have besides my buy sentiment in order to post) when you clearly are recommending "Better to get back in at $0.75 or Even a $1.00" even though right before you state "Three months ago I was saying that Lynas was not likely to go bankrupt. With the latest plant problems. I no longer think this is true."
Again your reasoning just in this post alone (and everything else you post) is suspect.
MCP going into chap 11 would be very bad news for Lynas. Just like Lynas doing the same would be bad for MCP. Imagine competing with MCP after shedding its $1.4 B in debt and the interest payments that go with it. Yes there stock holders and debtors would be hurt bad but the company emerges stronger. Good examples of this is the airline industry 15 to 20 years ago till about 5 years ago and the communications industry starting in 2000. Both show the domino effect where once one company goes chapter 11 others are forced to follow. If you own Lynas hope MCP does not go bankrupt. It may cause Lynas to follow and your stock goes to Zero. Anyone from either company pointing out how broke the other is like the pot calling the kettle black. In a few weeks we will see how both are doing and how they stack up. I suspect neither will be pretty.
...If MCP goes BK it substantially increases the chance of Lynas doing same current stock becoming worthless. Very good for Lynas wipes out current stock holders. CJ
Enough said.
LYC Price at posting:
5.9¢ Sentiment: Buy Disclosure: Held
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