More Stock Talk : METC and the Wyoming rare earth's yet to see.

 

 Market Talk

The "future" is like an open book with pages yet to be written.  Two days after the debt ceiling relief rally, we see the economy and the entire world in the same tenuous situation as before the relief rally. Still, the debt debate unresolved would have caused much turmoil and market turbulence.

People that read this site want me to prognosticate a little more on recent stocks posted.  So without further adieu, here a few comments on a stock under watch, METC.

 

Stock Talk

 

Focusing more on small cap stocks than larger cap stocks and definitely stocks under $100 and many under $10 with speculative possibilities for much higher.  Due to the speculative nature, I use the word "some".  Too much of any risky stock can really hurt. With that said the entire market is a gamble.  Its a matter of relativity.

After the relief rally, there may be a lull in bear market sentiment for awhile. However, I can't say we can be sure of anything with the Fed and their inflation fighting mandate.  I will start with METC stock talk and perhaps a few speculative notions, just for fun and caution as well.

METC:  Metallic coal miner for pig iron with a favorable interest rate and "potential" vast reserves of rare earth elements. (see my previous post on an upcoming proxy event).   here is a speculative notion. Suppose these reported vast reserves of rare earth's in the Wyoming mine pan out?   Who would be most interested?  I will suggest that will be the automobile and truck industry because magnetic rare earth's make electric motors more efficient and extend range.  For example, what will happen to METC stock if Elon Musk and Tesla or Ford or GM partnered with METC? This is an open question for the future to reply. 

I just hope China and their "CCP" does not start buying up METC stock to take control like they did with a previous American company, Smithfield foods, to control the pork industry.  A quick google returns this note:

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"Smithfield sold itself to WH Group a decade ago for $4.7 billion, after years of high grain costs and an industry glut of hogs pressured pork producers. At the time, WH Group's acquisition ranked as the biggest Chinese takeover of a U.S. company, prompting concerns in Washington."

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There are several other stocks on watch here.  However, the last thought about a Chinese company getting involved with METC is cause for pause as an American who's own father final mission was on D- Day, June 6, 1944.  I am grateful dad survived his 30th mission that day and was awarded the DFC for his service.  He lived on as the best Dad ever and great American to pass in our home at 102 years young with full soundness of mind and spirit.

"The Distinguished Flying Cross (DFC) is our nation's highest award for extraordinary aerial achievement. As a valor decoration, it ranks fourth in order of precedence, and is awarded to recipients for heroism while participating in an aerial flight."

I close this post by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to explore things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. With all the above caveats and attempted prognostications, I will close this post. 

Stay tuned for more opining on the market and stocks to watch.

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ALL in my humble opinion, scroll down and read more.

This site does NOT make Buy / Sell recommendations.
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The Market, War, and more "maybe some, not too much" stock talk too.

 

 Market Talk

The US debt ceiling bill cleared the House of representatives to pass to the Senate.  It should pass and the debt ceiling will be lifted again.  This allows the government to continue kicking the can down the economic road with trillions of dollars in new democrat tax n' spend debt until January 2025.

As far as the economy, the jobs reports may be misleading as higher paying tech firms have been laying off and auto companies like Ford move plants to Mexico. 

The war in Ukraine rages with Russia regularly trying to plummet Ukraine into the dark ages with missile strikes from air, land and sea. For now, the Ukraine defenses have held off many airstrike attacks on the capital, Kyiv, thanks to Patriot surface to air anti- missile systems supplied by America. The Patriot system involves contracts to Raytheon Technologies and Lockheed Martin.  There were reports that the Patriot has downed Russia's highly touted hyper-sonic missile that they try to rain down on civilians. Where is this all going? How will it affect the future?  I wonder how Russian families think about the Putin nightmare taking their sons into the abyss of war. Do they still buy the Russian propaganda bullshit that it's about defense of their "motherland"? not, never was.

 

In closing this market talk, I want to note the world seems to be in a much more dangerous place than ever before. The market shrugs it off (for now).

 

Stock Talk

 

I will try to tie up some loose ends of recent previous stock posts. Overall, I remain a little stock cautious and more in dry powder. 

 

I bought a few some shares of Ramaco Resources, METC to see how the latest findings of Magnetic REE mine out. Now, since buying some in early May, I recently find out that there is a proxy proposal that somewhat changes the structure of METC shares.  It seems a little confusing but, if approved, there would be a new class B of shares with one class B share distributed for every five shares of METC held on record before the close of business on May 12, 2023.

https://www.pressviewer.com/profiles/investor/NewsPrint.asp?v=6&b=2352&ID=117996&m=rl&g=1126

Perhaps the recent drop is because the date of record is passed so the share levels reflect that new buyers would not participate in 1 for 5 class B distribution.  I would prefer that if METC intends to move forward that they extend the date of the 1 for 5 offering into the future closer to the time of actually extracting the newly discovered rare earth elements.  (cautionary note: I hardly ever get what I prefer in stocks)

 

As closing thoughts on METC,  at the present share level the dividend is over 5%.  Should the rare earth findings prove to be mine-able, the earnings of METC could outperform the overall market.    Magnetic rare earths are used to make electric motors more efficient in high heat conditions. An example is that rare earth elements in electric vehicles extends their range in distance to travel on a single charge.

 

For me, it's the major magnetic rare earth elements discovered in their already working mine in Wyoming.   I posted before that I am NOT in favor of mandated electric vehicles and the forced extinction of the internal combustion engine. However, recent government mandates are pushing industry to mass production of ev's.  And, America is sorely behind our adversary, China.  A major find of Magnetic REE in the Ramaco Mine belt seems like a potential American treasure. 

 

The METC proposed proxy change will be discussed on June12 at a shareholder meeting (see above link).   I will let the market decide how the changes are to be perceived and voted on. I am holding a few shares, but a "not too much" position. There are speculative features about the rare earths being reported and I am unsure how the market will view this new proxy charter being proposed.

I close this post by noting that any view on the market and stocks on any particular day may change in the future days to come. That is why we watch and see how our views match up with the reality of the time.  But trying to look ahead a few months into the future may be a way to do things.  If you think too deep about world events and the recent alliances forming, projecting ahead can be a dicey endeavor. With all the above caveats and attempted prognostications, I will close this post. 

Stay tuned for more opining on the market and stocks to watch.

___________

ALL in my humble opinion, scroll down and read more.

This site does NOT make Buy / Sell recommendations.
_____________