Morgan Stanly also has been following MP for a few years. If you have an account it is available in your account they say to overweight which is the highest rating. A one-year price target of US 34. JMO but I would not buy MP in spite of them predicting a 30 % gain in one year. Why?
- MS estimates have been coming down never a good sign.
- MP has not made any sellable amounts of REO. Just some very small amounts of NdO. They are going for separation of all the elements including heavies. No NdPrO or LaCeO. This is an aggressive strategy I am sure they will go for the best price volume first.
- Current REE prices are hurting them just like Lynas.
When would I buy? When they say in a Q CC they have produced at least two elements in sellable quantities. Doing this means you will be buying in the mid to high US 20s, maybe low 30s, so you miss the bottom. The ride should be great after that.
What am I doing right now? is very simple. A day or two before Q CC I buy in the money calls with an expiration a short time after CC. days not weeks.
These are cheap I have loss about half my money the last 2 Qs. To lock in a large # of shares when good news occurs, I am glad to take the loss. If I had bought same number of shares just 3 Qs ago my loses would have been 10 times what they were buying insurance by buying calls. I made good money on these calls up till a couple of Qs ago.
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