Eleven reasons, why I am investing in lynas:
The commodity prices are very cyclical.
Metal prices and oil prices are down right now so the stock are down also. This decrease is mostly driven by the strong US dollar these days. This is a factor that you cannot control so it is impossible to fight against a bear market in commodities. But, then again, bears eventually change back to bulls.
1- Lynas is a producer of strategic products that are used in our modern society (smart phones---etc.).
2- Lynas has proven that its LAMP is environmentally safe.
3- Lynas share price is historically low and it is a bargain at these levels.
4- Lynas has managed to attract reputable substantial holders.
5- Lynas has de-risked its business through successful capital raising.
5- Lynas has managed to restructure its debts with affordable timetable and low interest rate.
6- Lynas has the Chinese government cutting interest rate and taking positive measures to raise RE tax and fight illegal mining.
7- Lynas has undeniable support of the Malaysian and the Japanese governments.
8- Lynas will benefit from The Free Trade Agreement that will open the door for Chinese investment .
9-Lynas has appointed Amanda Lacaze that has a successful track record of turning business around and in just few months, she managed to find ways to save $26m.
10- Lynas is one of the few companies that you can buy and sell parcels in 100,000 or even millions with close price, as opposed to companies with low volume on buy or sell side and the asking price is high (sell side) and the buy is very low (big gap).
11- Lynas has managed through recent measures to get the brokers changing their sentiment:
http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=LYC:ASX
http://www.4-traders.com/LYNAS-CORPORATION-LIMITED-6492543/consensus/
http://www.ig.com/au/ig-shares/lynas-corp-ltd-LYC-AU sentiment has improved with 4 brokers giving Lynas a buy rating
100% of IG client accounts with open positions in this market expect the price to rise
0% of IG client accounts with open positions in this market expect the price to fall- 51 – 250 IG client accounts have open positions in this market
Finally, bears eventually change back to bulls, yet we have the naysayers still arguing, missing the opportunities and are upset when we say bad luck ( did not mean it in a bad way, I meant it is bad luck when you miss out).
These are not an investment advice or attempts to convince the naysayers, but stating my opinions and thoughts of why I am investing in Lynas.
GO Lynas GO.
DYOR and only listen to to your own mind.
(20min delay)