Q: Hi 5i
Current holder of TMQ for about 1 year and see its up about 45% this morning . What the heck is going on? Would you continue you to hold at these levels ? Does its future look brighter today or is this unbridled speculation?
thx
Current holder of TMQ for about 1 year and see its up about 45% this morning . What the heck is going on? Would you continue you to hold at these levels ? Does its future look brighter today or is this unbridled speculation?
thx
5i Research Answer:
The rare earth sector has sky-rocketed as China has reduced exports and added restrictions, making all companies more valuable outside of China. TMQ got an extra boost last week on news that the US government was taking a 10% position in the company. The stock is now up nearly 700% YTD. Scarcity has value, certainly. We think the sector will remain in focus for some time. That being said, any improvements in the China restrictions will hurt the sector. We would hold, but trim gains to a position that reflects the risk. If we held a 2% position that had risen to 4%, we would likely take it back to 2%.