AUseeker wrote:So...if we compare Molycorp or any other competitor by market cap, based on what we know, where does Lynas stand?
The only thing I can use is price to book value. It is way off due too the increasing basket. But in theory it is off for all in a similar fashion. Lynas sits at about 5:1 with the longest time since a book revision. Moly is about 10:1 Rare Element Resources is 6.5:1 (with a recent book revision) Avalon is about 8.5:1 But it is hard to compare these stocks. I feel Book is underweighting time to production, project funding, and integration for starters. But I think it is fair to say Lynas would be twice the share price if it were American listed. NC says that won't happen at least until free cash flow positive. That statement shows he is not planning on needing more equity and it shows confidence. But it also means he will have one of the richest OTC ADR's before he graduates the thing. That's a strong argument even for a medium term trader to accumulate on. But the fundamentals and valuation are the real story behind Lynas.
LYC Price at posting:
$1.91 Sentiment: ST Buy Disclosure: Held
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