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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (40826)	12/28/2010 9:32:05 AM
From: E_K_S	1 Recommendation Read Replies (3) \| Respond to of 78525

Hi Madharry - Re: REE (Rare Earth Elements) The problem with many of the REE specific miners I have looked at so far is they continue to lose money. None are profitable or have any earnings to speak of. They do not have the economies of scale (in their operations) to make enough money just mining REE. I would be more inclined to invest in a company that was profitable with a PE of 12 or less, paid some type of dividend and mined REE as a side business and/or as a new product line. For example I own a platinum mine - Anglo Platinum Ltd. (AGPPY.PK) that pays a 7% dividend (they skipped their dividend in 2009) but more importantly provides a good hedge against inflation for the portfolio. The stock split 6:1 in Nov. 2010 so it is more affordable. Holding the stock works out better for me than owning the coins with better liquidity and I do earn an annual dividend. I will have to see if any of my other miners have a REE component (ie BHP, AU, AAUKY, VALE or even my USERX fund). Who knows, maybe some of my coal companies could start a REE division. EKS FWIW - Molycorp, Inc. (MCP) up big again today (over 7%) w/ China rumored to hold their REE exports. finance.yahoo.com