Top Rare Earth Metals Stocks

by Fred Fuld III

Recently, Sen. Mark Kelly (D, AZ) co-sponsored a bi-partisan bill called the Restoring Essential Energy and Security Holdings Onshore for Rare Earths Act of 2022, which calls for the development of a strategic reserve of rare earth metals by the year 2025, and bans the use of Chinese rare earth metals by the U.S. military by the following year.

What is a Rare Earth Metal?

So what is a rare earth metal? Rare earth metals, also called rare earth elements or REE, are heavy metals used in numerous industrial applications, many of which are critical.

Where are Rare Earth Metals Used?

Such uses include magnets, catalysts, batteries, glass, metallurgy, polishing, pigments, and ceramics, with the primary industry users being military equipment and renewable energy technology.

The 17 Rare Earth Elements

The following are considered to be the rare earth elements:

Lanthanum
Cerium
Praseodymium
Neodymium
Promethium
Samarium
Europium
Gadolinium
Terbium
Dysprosium
Holmium
Erbium
Thulium
Ytterbium
Lutetium
Scandium
Yttrium

What Countries Produce Rare Earth Metals?

According to Statista, China produces over 57% of the earths rare-earth elements, with the United States in second place at 15.6%. Myanmar (Burma) is third at 12.3%, followed by Australia and Madagascar.

The Top Rare Earth Elements Stocks

The leading rare earth elements company in the United States is MP Materials (MP) with a market capitalization of $7 billion. The company is in the business of rare earth mining and processing, and owns the mineral rights to the Mountain Pass Mine and surrounding areas in Nevada. It produces neodymium and praseodymium.

The company trades at 59 times trailing earnings. Revenues for the latest reported quarter rose by 36% over the previous quarter, and net income increased by over 57%.

The other big producer of rare earth metals is Lynas Rare Earths (LYSCF) (LYSDY). This Australian based company mines, extracts, and processes rare earth minerals in Australia and Malaysia.

The stock has a trailing price to earnings ratio of 55.5 and the company has a market cap of $6.7 billion. Revenues for the latest reported year jumped by 61% over the previous year. Earnings went from negative $19 million to a positive $157 million during the same time period.

There are actually over two dozen companies involved in rare earth metals, including mining, processing, selling, and recycling. To see the list, click HERE.

You also have one other option, and that is VanEck Vectors Rare Earth/Strategic Metals ETF (REMX). This ETF invests in a diversified portfolio of companies involved in the mining, refining and recycling of rare earth and strategic metals and minerals.

Hopefully, these stocks may provide a rare opportunity for your portfolio.

Disclosure: Author owns MP.

These are the 18 books that Warren Buffett thinks you should read to get smarter about investing and trading

Warren Buffett, head of Berkshire Hathaway (BRKA) (BRKB), actually came out with a list of books that he recommends on how to trade stocks and invest.

If you are interested in reading books about how to invest and trade, that are recommended by Warren Buffett, they can be found on the list below:

Business Adventures Twelve Classic Tales from the World of Wall Street

Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition

The Great Crash 1929

The Intelligent Investor: The Definitive Book on Value Investing. A Book of Practical Counsel (Revised Edition)

Investing Between the Lines: How to Make Smarter Decisions By Decoding CEO Communications

Here are his recommended books about himself.

Berkshire Beyond Buffett: The Enduring Value of Values

Berkshire Hathaway Letters to Shareholders

50 Years of Berkshire Hathaway Wall Print
This is actually a wall print poster.

Buffet: The Making of an American Capitalist

Buffett’s Bites: The Essential Investor’s Guide to Warren Buffett’s Shareholder Letters

The Essays of Warren Buffett: Lessons for Corporate America, Fifth Edition

A Few Lessons for Investors and Managers From Warren Buffett

Here are more books that Warren Buffett recommends about himself.

My Warren Buffett Bible: A Short and Simple Guide to Rational Investing: 284 Quotes from the World’s Most Successful Investor

The Oracle & Omaha, How Warren Buffet and His Hometown Shaped Each Other

Tap Dancing to Work: Warren Buffett on Practically Everything, 1966-2013

Warren Buffett on Business: Principles from the Sage of Omaha

Warren Buffett’s Ground Rules: Words of Wisdom from the Partnership Letters of the World’s Greatest Investor

Warren Buffett Speaks: Wit and Wisdom from the World’s Greatest Investor

Enjoy your reading!!!

This page includes affiliate links.

How to Trade Agricultural Commodities without Trading Futures

by Fred Fuld III

Have you ever thought about trading or investing in an agricultural commodity, possibly as an inflation hedge, such as wheat, corn, soybeans, or even coffee?

But maybe you didn’t want to get into futures because of the risk or lack of understanding or both.

Well, there is another way to trade these food items, and that is through the agricultural commodities exchange traded funds.

Probably the safest way is through an ETF that has a diversified portfolio of agricultural products, such as the Invesco DB Agriculture Fund (DBA), which has an investment objective of investing in a portfolio of exchange-traded agricultural futures.

If you think the price of corn is going to take off, you could trade the Teucrium Corn Fund (CORN).

Or maybe you think the demand for sugar is going to increase, causing the sugar price to spike. You have a couple of alternatives, the iPath Series B Bloomberg Sugar Subindex Total Return ETN (SGG) and the Teucrium Sugar Fund (CANE).

If you like chocolate, there is the iPath Bloomberg Cocoa Subindex Total Return ETN (NIB).

The following is a list of the agricultural commodities ETFs.

Commodity	Symbol	ETF Name	Total Assets*
Agriculture	DBA	Invesco DB Agriculture Fund	1,018,170
Agriculture	RJA	Elements Rogers International Commodity Index-Agriculture Total Return ETN	153,758
Corn	CORN	Teucrium Corn Fund	120,848
Coffee	JO	iPath Series B Bloomberg Coffee Subindex Total Return ETN	94,895
Wheat	WEAT	Teucrium Wheat Fund	75,645
Soybean	SOYB	Teucrium Soybean Fund	44,971
Sugar	SGG	iPath Series B Bloomberg Sugar Subindex Total Return ETN	26,419
Sugar	CANE	Teucrium Sugar Fund	22,844
Cocoa	NIB	iPath Bloomberg Cocoa Subindex Total Return ETN	22,713
Grains	JJG	iPath Series B Bloomberg Grains Subindex Total Return ETN	21,563
Cotton	BAL	iPath Series B Bloomberg Cotton Subindex Total Return ETN	20,602
Livestock	COW	iPath Series B Bloomberg Livestock Subindex Total Return ETN	19,665
Agriculture	TAGS	Teucrium Agricultural Fund	14,180
Agriculture	JJA	iPath Series B Bloomberg Agriculture Subindex Total Return ETN	11,211
		* In thousands

You will notice that some of these are ETNs (Exchange Traded Notes) as opposed to ETFs. ETNs are senior, unsecured debt securities similar to a bond

Keep in mind that these funds are very volatile, very speculative, and can have low volume and very wide spreads.

Disclosure: Author is long JO and WEAT.

How Did the Meme Stocks Do Last Year? Here’s How

by Fred Fuld III

About a week ago, I heard an analyst on CNBC being interviewed about meme stocks, although he didn’t pronounce it “meeem”, he pronounced it “me-me”. Do you think it was accidental, through ignorance, or on purpose with a hidden meaning?

Whatever you call them, the meme stocks have had a wild ride last year. Surprisingly, a few of them performed extremely well, but many ended up dropping over 40% for the year.

Interestingly, the top performers were GameStock, I mean GameStop (GME) (did I type it that way accidentally or on purpose?), up 688%, and AMC Entertainment (AMC), which rose by 1183%.

The memes that tanked the most were Clovis (CLOV) down 78% and ContextLogic Inc. (WISH), which dropped by 83%.

The following is a list of the meme stocks and semi-meme stocks along with the January 1 to December 31 performance for the year 2021.

GME	688%
AMC	1183%
CLOV	-78%
CRON	-43%
DASH	4%
FVRR	-42%
HOOD	-49%
IQ	-74%
OTLY	-61%
WE	-27%
WISH	-83%
BB	41%
SNDL	22%
BYND	-48%
SLV	-12%

Maybe we will see some meme action again this year. What do you think?

Disclosure: Author owns SLV and HOOD.

Pitch Like Hollywood: What You Can Learn from the High-Stakes Film Industry

by Fred Fuld III
Editor & Publisher, Wall Street News Network

Have you ever had to negotiate with your boss about a pay raise, or try to raise money for your company, or interview for a job, or sell a product or service, or even ask someone for a date? If so, it means that you had to give a pitch.

The book, Pitch Like Hollywood: What You Can Learn from the High-Stakes Film Industry, by Peter Desberg and Jeffrey Davis, is all about pitches. The authors show how to create a pitch, how to prepare for a pitch, how to present your pitch, how to deal with pitch panic, and other strategies. This guide even tells you the best time of day to make a pitch.

The book is also useful for those who have to give speeches.

Don’t let the word “Hollywood” in the title deter you from reading this book. Examples from many different industries are included, such as aerospace, education, automobile, technology, advertising, and many others.

The most important aspect of this book that I liked the most was the extensive research and studies that were done to back up what the book presented.

My favorite chapter was Chapter 5 – Persuasion Bootcamp, where the authors present and describe all of the Compliance Gaining Techniques.

It doesn’t matter if you are the head of a startup, or working your way up the corporate ladder, or trying to promote your book to a publisher, or just trying to sell your products or services to a customer or client, I highly recommend Pitch Like Hollywood to anyone who is ever involved in persuasion.

Article includes affiliate links.