Why hold Lynas?...

Like many LYC investors I have drifted away from following the day to day bad news and I have become discouraged with the short term political tennis match. I am still waiting to break out that bottle of fine Malaysian wine that I plan to celebrate with my first dividend check... It looks like it will age a bit longer...

Why hold Lynas? While I still have complete confidence for the long term future, the short term still looks a bit fuzzy. I'm sure the QR will be very positive but it is likely that the good news will be overshadowed by a Wong attack.  That said there are three reasons I am still a strong buy on the sentiment meter...

First, there is logic in the reasoning that since Lynas provides one third of the Japanese RE requirement for it's manufacturing base it would be difficult for Malaysia to cut the supply line. The good Malaysian/Japan relationship pretty much insures that the supply chain will not be interrupted as it is hard to imagine just where Japan would find a replacement supply...

Secondly, Lynas holds tremendous assets including IP, experienced staff, and little debt... Oh yeah, I forgot the Mt Weld mine that is wholly owned by Lynas and is currently producing some of the highest grade ore in the RE industry.  In some minds the mine is worth the price of the ticket on it's own...

Third and most important is the leadership, Amanda has been through this before, to her it's just another escape room where she deciphers cryptic clues from the equally cryptic Yeo and the Malaysian government.  It's a shame that the political pall is ruining what should be exciting times at Lynas, all due to arcane thinking and political retributions...

In any event the current political situation has clouded the near term picture and has been difficult to digest on a day to day basis. Who knows what the solutions are however if there is a way out however Amanda will implement the best solution...  We all know she is not afraid to consider and pursue other options...

Bottom line, Lynas has hit a bit more turbulence and it make take a bit of time to navigate to the next next, but it appears that  Amanda is determined to succeed one way or another.   I have complete confidence in the story and the execution of the story, even though it seems like the book keeps getting a bit longer almost every day...  JMHO...