Agree MAHLynas are coming on stream at a difficult...

Agree MAH

Lynas are coming on stream at a difficult time.
Companies and their profit are all driven by the fundimentals of DEMAND and SUPPLY.
This effects the basket price.

At present Lynas are attempting to sign long term contracts will current oversupply of most REO elements and potential future undersupply in some.

Difficult time for both the buyer and the seller.

Lynas appear to be a well run professional unit that don`t take notice of share price movements within their long term plans.
They have sold shares to INSTOS way above the current price which means INSTOS gave that valuation their approval.

Maybe shareholders in LYNAS will have to accept that until long term set price contracts are signed then the shareprice will move with the basket, future price perception, the volume of market oversupply and the short sellers timeframes.

For my amateur charting I see this monday as a crucial day to set near term trend. The shorts appear to be a little nervous on Friday and I felt they had an oppotunity to drive lower but didn`t. Maybe there is not that much interest in being last to the party.

The share price could spike on some short covering but with no income and a low basket price the SP may be about right. $2OO mill in cash and $750mill in plant and enterprise value. If it is about right with each positive announcement in the future there will be stock sold short looking to buy back their position.

Maybe this current price is the base or the shorts will look for one more push. That would be a bit risky given the low volume each day. There is nearly 30 full trading days of short volume at current levels. Any contract or sale announcement by the company should underline this current shareprice.

IMHO DYOR