At a techie party the other night I was reminded by a friend, of the inventor Andy Grove, the genius behind Intel the producer of the first microprocessor. Andy held demonstration of the very first, microprocessor as a rudimentary calculator designed to wow the crowd but was truly disappointed when the invited engineers responded with a lukewarm “It’s cute but you will never sell that many calculators.”…
Lynas has a lot in common with Intel in that Lynas is also on the verge of introducing a “disruptive technology”, one that will be defined as the scientific community discovers the existence and characteristics of the 17 rare earth elements yielded by Mt. Weld. While many know the story behind Nd/Pr it is the other elements that have tremendous unknown potential as the applications of each element may increase exponentially providing tremendous investing opportunities directly in Lynas or the many inevitable downstream users representing future markets…
Everything from Erbium which is used to accelerate data transfer on the internet to Samarium which is used as a neutron absorber in nuclear reactors are fairly recent applications. It would appear that we are only beginning to scratch the surface of the potential uses of rare earths and the exponential growth of both the applications and the markets for these applications will literally pay handsome dividends in the near future…
Bottom line, Amanda has created a rare investing opportunity in that the emergence of Lynas as an investment vehicle has been camouflaged by overshadowing news and the gravitational forces of other markets including the US investment flavors CF and DY. Selling Lynas now would be like dumping Intel back in the 1970’s because the calculator market didn’t seem big enough to support very many microprocessors. Those with vision recognized that microprocessors had many different applications and many, many more markets and so the story went…
Microprocessors were a disruptive technology in their day and it is hard not to step back while looking through the same lens and see the similarities in rare earth technologies. Perhaps fifty years, clear vision and a sprinkle of terbium dust will help pay solid dividends to those of us who have endured the challenges of the past and allow us to be part of history as it repeats itself… JMHO…
LYC Price at posting:
$7.62 Sentiment: Buy Disclosure: Held
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