LYC 2.98% $6.19 lynas rare earths limited

  1. 7,245 Posts.
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    Sorry This is long but you seem to be very down or even bashing Lynas with your predictions so i need to defend Lynas.

    What don't you get if reo prices go up profits go up people buy stock. The current PE is very high though the drop of the last few days has lowered it to 85. This combined with the volatile beta of -.64 make this a Very aggressive growth stock. The volatility means it can move fast in a situation. The ASX 200 average PE is 15 to 16. Being way above it indicates problems. What you seem incapable of understanding is being way below can be worse. 7.8 / 15 = 52%. The stock being 50 % below the ASX average indicates it is strongly “out of favor” the same way that the TMM PE = 85 indicates it is strongly in favor, too strongly JMO. Higher profits like you say should keep it in favor keeping the PE higher. Do you really want Lynas to drop so far out of favor their PE is half of the ASX average? I don’t because I will be buying like crazy in the 20 to 25 range. I know you love Lynas and want the stock to do well. Your continuing to support a ridiculously low PE just shows your lack of understanding of what is the most popular stock measuring metric. Lynas has an exciting future. One where it should grow nicely. Profits should grow and raise the SP. The only reason for supporting such a low PE is because you do not know what this Metric is. I agree with you Nd prices will go up. I may disagree about when and cause but they will go up and I am waiting for the indications that is going to happen to buy.

    Let me ask you a simple question why do you think that Lynas will fall so far out of favor that it will sell for about half of the ASX average PE in spite of growing profits?

    If you are going to say the analysis tell us who they are!!! I have not seen any that are what you say. Yes they all say increasing profits but nowhere have I read that Lynas would fall so far out of favor that it could only support a PE of 8. No reference makes me believe you are making it up! Who are they?

    Of course you did not answer any questions that I asked just defended your views with no new info no counter to my claims. Even restated what I agreed to that profits will go up. That says allot.

    What don’t you get my position is simple. Yes profits will go up. That stock sales will go up as well. Maybe not as much on a percent basis which will bring the PE down to a respectable PE in the 20S. But no way can I comprehend how rising profits would make Lynas go so far out of favor that they would not even have the same PE as the ASX 200 never mind one substantially lower.

    PE is an indicator of public sentiment high above averages indicate strongly in favor well below indicate out of favor. This is investing 101. A couple of things you should read.

    https://www.investopedia.com/articles/technical/04/020404.asp

    https://smallbusiness.chron.com/high-priceearnings-low-markettobook-ratio-21646.html

    It is true every where even Pakistan

    https://www.mdpi.com/2071-1050/11/1/94/htm

    Lynas is a good company it deserves a premium to its PE. 80S and 90s is too high. 8 is certainly too low. If PE hits 35 I will change from a sell to a hold. Both the AR and Q1 could move this up or down.

    Here are a few other important metrics to concider.

    Total cash /share MRQ 8 cents.

    Book value / share MRQ $0.69


 
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Last trade - 16.10pm 26/04/2024 (20 minute delay) ?
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