just got this email 12 month target $2.50

From Patersons Brokers:

Smoke and Mirrors: It is cool to say you know about rare earths. And there are plenty of people telling ya how good they are too. And they love the China factor, how they?ll become net importers by 2015? but rare earths just aren?t rare earths. Until you separate the 17 odd different properties, they just aren?t worth anything. It is just earth. Heavy REE or Light REE? What elements will they prominently produce? How much do they sell for per tonne? Does the company have the skills to separate the elements? Our one and only stock has really been Lynas Corp, call it luck or good fortune. We liked them early, but I personally find them hard to value here. The market has factored in some form of production certainty. I?m sure they will go on to deliver. And I?m sure they will get their processing plant right too. But the development of a REE processing plant (or LAMP as they call it) is the time of highest risk in my opinion and we should never apologise for taking some profit. As the consumers of REE continue to knock down their door, we retain our BUY, risk not withstanding. Finding the next LYC might require a little for skill however.

Code: LYC
Disclosure of Interest: No
Patersons Rec: Yes
Last Trade: $ 1.915
12M Target Price: $2.50