Ramaco Resources, METC and METCB UPDATE - WoW

 

Stock Talk

 

Ramaco Resources (METC and METCB)  has been highlighted here in several posts as a stock to watch.  It was noted that METC and METCB Ramaco are under recognized and was practically pounding the table as a "some" stock.  Well, we see quite an interesting update today. Fundamentals matter and add the update to the vast rare earths resources found in the Wyoming property.  Ramaco looks back on track in quite an impressive way. I don't need to prove my point today, read the Ramaco update and see what YOU think.

https://finance.yahoo.com/news/ramaco-resources-provides-third-quarter-204500138.html

Here is a Jones report highlight posted back in July.

http://stockstowatch.blogspot.com/2023/07/market-talk-and-one-company-makes-my.html

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.
_____________

Circumspect Monday : "some" vs "too much" - and Dry powder.

 

Market Talk

 

Sometimes maybe you just get "a feeling" about things. In the market, it seems that most stocks are just floating about with no clear winners.  Even the pundits come out with their pumps on the flashy or trendy stocks like in artificial intelligence (AI) software.  These pumps can cause the stock to surge a week, but then when you start looking at their financials and the reality of management and high costs and losing in earnings, eps, it points out glaring hyped up prices.  And true to nature of a fickle market, the hyped AI stocks correct as traders sell.

After every post here there is note about watching how things work out to our prognostications.  There are many factors that can waylay outlook.  One important point about trying to look a few months ahead is that we do not get arrogant by putting "too much" on our projections, predictions and hope.  We always say "some" on any one stock and not "too much".

There is one factor that can affect any bullish prediction -  Short sellers. The other is insider greed to take more than the company's results warrant. That goes for any stock.

I will likely  post more on the above later.  For now, looking at the overall market, world events, the fed's calling - it seems time to become more circumspect.  The words "some" not "too much" still resonates here and if "too much" , it may be time to adjust.

Stock Talk

 

 

When things seem more dicey in the overall market, sometimes we use the words "dry powder" .  This does not mean panic and sell all of the stocks we may have "some", but if "too much" ?  Well, each stock watcher has to consider their own situation.  

 

I will wrap this up by pointing to a previous post on a possible "dry powder" vehicle, USFR,  to weather a downturn in a high interest climate.

 

 https://www.blogger.com/blog/post/edit/8396170701207337987/1884679105117177523

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.
_____________

Does Nerdy stock have the AI hype and juju to catch more momo on fomo?

  Market Talk

The many pundits are taking a recession "off the table" for the remaining part of this year.  Some leave open the distinct possibility for the R word next year. The markets are enjoying a run in the various indices.  Many investors now have a case of fear of missing out or fomo for short.  Perhaps sheer fomo will drive the markets higher for awhile until the next roadblock to stock value prosperity shows up. We will dismiss discussion on roadblocks for the time being. Far be it from moi to be the party pooper in the mix.

 

 

Stock Talk

 

The two buzz words of the time are "Artificial intelligence" or simply AI.  JP Morgan has picked a stock called NERDY or symbol NRDY in the AI space. Is it a fomo buy?

The stock NRDY has already nearly doubled in one month trading at near $5 a share today.  It is in the online teaching space of a multitude of subjects. The previous quarter saw a revenue beat but an earning miss of 4 cents per share for a loss of 21 cents per share. Yet, JP Morgan analysts are endorsing NRDY as a buy now stock.

https://finance.yahoo.com/news/j-p-morgan-recommends-2-162844131.html

Does Nerdy stock have the AI hype and juju to catch more momo on fomo?

We will have to watch NRDY stock to see how their 2nd  quarter earnings play out in their coming August 8 report. 

 

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.
_____________

Market and Stock Talk on BUY fundamentals - METC and METCB. (American treasure?)

 

 Market Talk

The Federal Reserve, led by Jerome Powell, will report on their decision on interest rates on July 26.  Their goal is to quell inflation from 4% range back down to 2 %. The last print of inflation was the rate of inflation rose about 3 %, slower than previously. The Fed target rate of inflation is about 2%.  That said, the US economy seems to be running "hot" with jobs growth and wages increasing.  Ironically, a slowdown of GDP in China and elsewhere spooked the markets last week.  It seems that in America, for now, many pundits are taking the notion of recession "this year" off the table.  The question, in my view, is how far is the Fed willing to go to try to put a stake in the heart of Dracula known as inflation.

 

The jobs reports have been coming back from pandemic lows and wages have been rising that tends to keep inflation going.  The Fed has already signaled that it could raise rates another 25 % basis points to hike to 5.5%.  Further, they signaled that it could be not one, but two rate hikes to come. We should recall that the Fed's primary mission is to fight inflation.

 

They have to try to slow down the economy and try to make the soft landing of low inflation and full employment. But the casualty of higher rates is typically job cuts and other impacts that can lead to the R word. One impact of higher rates is commodity prices like Gold tend to dip.  This can also happen to crypto - like bitcoin.  As time ticks forward to July 26, it may be interesting to see if  both gold and bitcoin issues start to subside in price.

We will see, said the blind man, as to how this all works out.  On one hand I suspect the Fed does not want the stock market to fly and especially crypto and related stocks because that in of itself can fuel inflation.  I suspect the Federal reserve in addition to raising interest on July 26 will be very tempered in their guidance going forward.  Meanwhile, fear of missing out (FOMO) is driving the equity markets higher  Is that a fool's game following the herd or a smart investment strategy?  We will see what guidance the Federal reserve offers as to their inflation fighting mission on July 26.

 

Stock Talk

 

Let's think about stock fundamentals.

For one, actual earnings matter.  The share price-to-earnings (PE) ratio is an indicator of value in any particular company stock.  The lower the PE in a sector typically means that the stock is performing well and may be undervalued.  Many stocks are priced so high, on hype or hope for example, that they do not even register a PE.   This applies to many crypto based stocks.  The market is pricing up those stocks "on hope" that the companies will meet "expectations" in the future, possibly in years to come.

 

Another metric to determine a good "buy stock" is how the company rewards their investors.  The dividend, if offered, is a key way a good company returns value to loyal shareholders.  Many high priced stocks trading on hype or hope - have ZERO dividend

Today, the focus is a company that meets both metrics of value.  This is not a "hope and hype" company. Their on-going metallic coal operations for producing STEEL are quite profitable.   It seems under recognized at the moment, but in a few months, it all could change when plans for discovered reserves of rare earth elements in the Ramaco Wyoming mine are reported.

Ramaco Resources ( METC): 

Both METC  (Class A) and  METCB (class B) seem undervalued.

There are " bitcoin miners " losing $$ chasing tails and pay no dividend.  Priced many multiples above a real miner like METC  that has a low PE of 4 and a comparatively great eps ($2.25)  and about a 5% dividend - and has a take in possibly the largest American reserve of rare earths that have better substrate quality for processing than competing reserves held by China.  Magnetic rare earth elements are used in all kinds of electronic devices and especially in electric motors to make them more efficient. This extends RANGE in electric vehicles.  Google says:

 "Rare earth metals and the alloys that contain them are used in a variety of high-tech applications, such as wind turbines, electric vehicles, rechargeable batteries, radar systems, and laser crystals. For this reason, they are called "vitamins of modern industry."

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Now this makes  METC a potential American treasure because China dominates the rare earth metal industry .

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METCB shares were newly formed as a royalty vehicle that will derive revenues from a royalty from METC mining activities. While full details are in process, a back of envelope calculation points to very positive dividend that could be paid to METCB shareholders.

The catalyst for this observer will be what is decided with the magnetic rare earths in the Ramaco Wyoming property. Previous findings pointed to vast rare earths that would potentially be more readily mined requiring less processing.

In the meantime, the revenues and METC earnings from metallic coal at several mines are doing just fine. This is NOT thermal coal, it's coking coal, often called metallic coal, with high carbon used to produce steel from iron ore.

Metallic coal is needed to produce, all kinds and levels of steel ranging from high quality refined steel with special added alloys to pig iron used for example in automotive and other iron based castings. 

Based on the above observations, the Jones report view is that both METC and METCB shares are likely undervalued and represent a good "buy some" at current price ranges. When the magnetic Rare earths come in it should ADD to an already great story and earnings and dividend.

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.

___________

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

This site does NOT make Buy / Sell recommendations.
_____________

 

More Market and Stock Talk: Watching Ramaco for rare earths updates is like watching grass grow BUT good divys are in the grass.

 

 Market Talk

The Federal Reserve, led by Jerome Powell, will report on their decision on interest rates on July 26.  Their goal is to quell inflation from 4% range back down to 2 %.  Good luck with that.  Meanwhile, the jobs reports have been coming back from pandemic lows and wages have been rising that tends to keep inflation going.  The Fed has already signaled that it could raise rates another 25 % basis points to hike to 5.5%.  Further, they signaled that it could be not one, but two rate hikes to come. We should recall that the Fed's primary mission is to fight inflation.

 

They have to try to slow down the economy and try to make the soft landing of low inflation and full employment. But the casualty of higher rates is typically job cuts and other impacts that can lead to the R word. One impact of higher rates is commodity prices like Gold tend to dip.  This can also happen to crypto - like bitcoin.  As time ticks forward to July 26, it may be interesting to see if  both gold and bitcoin issues start to subside in price.

 

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.

Stocks on Watch:

Ramaco Resources ( METC): 

Both METC  (Class A) and  METCB (class B) seem undervalued.

There are " bitcoin miners " losing $$ chasing tails and pay no dividend.  Priced many multiples above a real miner like METC  that has comparatively a great eps ($2.25)  and dividend  and has a take in possibly the largest American reserve of rare earths that have better substrate quality for processing than competing reserves held by China.

METCB shares were newly formed as a royalty vehicle that will derive revenues from a 20% royalty from METC mining activities. While full details are in process, a back of envelope calculation points to very positive dividend that could be paid to METCB shareholders.

The catalyst for this observer will be what is decided with the magnetic rare earths in the Ramaco Wyoming property. Previous findings pointed to vast rare earths that would potentially be more readily mined requiring less processing. In the meantime, the revenues and earnings from metallic coal at several mines are doing just fine. This is NOT thermal coal, it's coking coal often called metallic coal with carbon used (update) to produce steel.  Metallic coal is needed to produce all kinds and levels of steel ranging from high quality refined steel with special added alloys to pig iron used for example in automotive and other iron based castings. 

Devon Energy (DVN) :  Current "some"  position on this oil and natural gas company here in America.  Recent cutbacks is Saudi production and higher gasoline prices at the pump keep me holding some DVN.  We see the share price today moving into the 50's. If DVN can hold the 50's it could be on its way back to higher values .

USFR :  An etf to maybe stash some dry powder for a good interest rate based on US treasury notes. As the fed raises rates , the USFR dividend is based on short term treasury notes.  This may not be a bad place to put some dry powder.  Etf's are not guaranteed vehicles but Wisdom tree has a good track record of staying on point with USFR.  For this report, we always just say maybe "some".

Oncolytics Biotech (ONCY):

ONCY has been under recent quiet accumulation in high volume days. Preparations are  being made for Phase 3 trials on Breast and Pancreatic Cancer treatments. Coordination of a faster trial than fast track is in process as reported in a PR.  ONCY has some potential to explode higher due the nature of goal in this special Phase 3 Pancreatic cancer trial. But, this is a speculative issue and in the Jones report view " maybe some, but not too much"  if they hit the target some could be enough to enjoy a nice gain without too much risk. While this is speculation, some company like Merck KGaA could be watching ONCY as a potential partner. It fits their profile and other big pharmas may be watching and possibly part of the recent accumulation .

Hepion Phamaceuticals (HEPA):  Both ONCY above and HEPA have a similar profile. they are both at the cusp of starting the final phase 3 of clinical trials. HEPA has a shot with a promising drug to treat liver disease in again, a potential market of $ Billions. Both ONCY and HEPA could benefit from a collaborating partner to help fund pursuit of two promising treatments to help people. HEPA has been pretty quiet.  It's hard to tell what they are up to.

 

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.

___________

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

This site does NOT make Buy / Sell recommendations.
_____________

 

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.

___________

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

This site does NOT make Buy / Sell recommendations.
_____________

 

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.
_____________