The USA rare earth stock is a speculative drama on the rare earth demand – and it is not working very well today.
Share of USA rare earth ,USAR -13.90%, The stock fell 13% in an inauspicious 13% through the stock on Friday at 1:30 pm. And why?
Well, last night, President Trump announced the signing of a trade deal with China, and this morning, the Ministry of Commerce of China confirmed the news, “said with the intention of approving export applications for goods under export control rules,” as CNBC reported.
Image Source: Getty Image.
Good news for USA rare earth stock is bad news
China is the first and most importantly for applications for the export of rare earth magnets. And the reason for this is that the USA is bad news for the rare earth that the company itself is trying to break into the rare Prithvi Biz, Mining, processing and supply Sierra Blanca, a rare earth extracted from a mine in Texas.
Any increase in cheap rare earth exports from China can torped the USA rare Earth’s trade model, which is really dedicated to China. No Permission for rare earth exports, such as rare Earth from within the US would be the only way to use products.
Is USA rare Earth Stock a sales?
Nevertheless, a couple of cavets are worth indicating. First and foremost, USA rare earth – which was formed only in 2019 – does not really do any rare earth… yet. The company has no revenue, operational benefit or free cash flow. It has full $ 40 million Net profit The last one year came from “Proper market price of financial instruments”.
For example, it really does not matter what China does (or does not) unless the USA starts producing some of its own rare earth, and proves itself a viable business. Until this happens and this, I consider the stock completely speculative – and Maybe one sells,
Rich smith There is no situation in any shares mentioned. There is no situation in any stock mentioned by the micle flower. Motley is near the flower Disclosure policy,
