Yes Stock is going up dramatically. Can you tell me why?
It is not because of company performance they had EPS of 0.63Cents last half Vs 60 cents 30 months ago a tremendous drop. What do you see that will turn this around?
What is supporting this price? I maintain it is only optimism over the future and absolutely not fundamentals. This has never lasted any time in history but it has always lasted longer than I expect. Look at DOT Com 2000 and banks 2008. This is most clearly shown by PE which is currently 154. That says Lynas is earning 1/154 = 0.6% on todays SP Would you put your money in a bank that only returned 0.6%?
Another indication is what is the PR of its peers on the ASX 200. Read about current and historical at
https://worldperatio.com/area/australia/ Then compare Lynas to its pears. Lynas PE is about 0.16% of ASX. Is Lynas going to be corrected down in a major way? Only time will tell but history says it is highly likely.
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