LYC 0.00% $6.40 lynas rare earths limited

I think I have been very consistant for over 18 months in my...

  1. 7,451 Posts.
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    I think I have been very consistant for over 18 months in my explanation but let me make it clear to you.
    First LYC is solidly an agresive groth stock. In any economic down turn these are always the hardest hit. The AG class not just Lynas
    Secound As companies mature PE becomes much more important. Not only is LYS EPS poor but they are very inconsistant.
    Third. The auto industry is still the largest user of PM products. Right now that is the pure ICE sector not HEV or BEVS. This sector is in the third year of a down turn. this is the worse year so far both YOY and YOY YTD. The auto industry is always hit first hardest and last to recover in any down turn.
    Forth The next bigest markets are motors in general the bigest users are hand tools and appliances. both are hit hard in recesion. Combined with item 3 this will cause a fall in NDPR prices which we have been seeng for 9 months. or maybe I should say 2 years fall of 2017 was almost 50% higher than today this is what made H1 2018 such a great half. 51M NPAT.

    2019 looked very good if you only look at the press and on the surface. who could not be overjoyed by 80M NPAT. I know I was untill I took a care full look. Most of this was a one time adjustment of the JARE loan. With out this adjustment 2019 earnings, AUD 39 M, were lower than 2018. 54 M, H2, 17, M was lower than H1 19M. ( h1 lost December so this is even worse than it looks) Not a good trend. What happens when H1 2020 comes out and shows a substantial down turn in EPS because of no JARE adjustment?

    Now if you think the WW economy is going to grow dramatically, buy Lynas as an agresive groth stock it will out perform the market. I will be buying heavily when WW conditions turn. If you do not then you should be taken measures on all agresive groth and groth stock to protect your portfolio. Not just Lynas. If you look at my posts 15 months ago Lynas was actual the last Agresive stock I sold in my holdings. All replaced with Value stocks which are doing well. they will go down in a correction or recesion but not nearly as much. Then as things change I will sell them and go with growth again. Lynas will probally be one of the first I buy, I will make the decision then not now. So could you please be a little more investigative before you tell somone to "Shut Up" You were way off base in assuming I did not have reasons. I find it interesting that this is suppose to be a discusion board but any one that disagrees with the majority is always encoraged to leave.
 
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$6.40
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Mkt cap ! $5.982B
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$6.47 $6.48 $6.34 $20.28M 3.161M

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