3 MASSIVE ‼️ RARE EARTH STOCKS (Best Stocks To Buy Now?)

Key Concepts

Rare Earth Elements (REEs): A group of 17 chemical elements with unique properties crucial for modern technologies, including magnets, batteries, and electronics.
Geopolitical Supply Chain Risk: The vulnerability of a nation's access to essential resources due to reliance on a single or dominant foreign supplier.
Government Investment/Subsidies: Financial support provided by governments to strategic industries to promote domestic production and reduce foreign dependency.
Stock Market Volatility: Significant and rapid price fluctuations in the stock market, often driven by news, investor sentiment, or sector-specific developments.
Technical Analysis Indicators: Tools used by traders to analyze price charts and predict future price movements, such as Bollinger Bands and moving averages (e.g., the 13-day moving average).
Market Capitalization: The total market value of a company's outstanding shares, calculated by multiplying the share price by the number of shares.

Rare Earth Elements: A Strategic Imperative

The video highlights the critical importance of Rare Earth Elements (REEs) in the current geopolitical landscape, particularly concerning the trade relationship between China and the United States. The speaker argues that REEs are a "glaring opportunity" with billions of dollars from the government expected to flow into companies involved in their extraction and processing.

The China Dependency and US Strategy

Dominant Supplier: China is reported to control approximately 90% of the global rare earth element supply for manufacturing. This creates a significant vulnerability for countries reliant on these materials.
Government Response: The US government, recognizing this dependency, is actively seeking to diversify its supply chain and reduce reliance on China. This is being driven by the Department of Defense and other government entities.
International Deals: The US is pursuing deals with other countries, such as Australia, to secure alternative sources of critical minerals. An example cited is an $8 billion critical minerals deal signed by the former US Prime Minister and Australian Prime Minister to counter China's dominance.
Increased US Spending: US spending on critical minerals has surged dramatically, from $500 million last year to nearly $3 billion this year, indicating a significant shift in government priorities.

Investment Opportunities in Rare Earth Companies

The speaker identifies several companies involved in the rare earth sector as potential investment opportunities, emphasizing that this is not a "one-off" situation but a sustained government initiative.

Key Companies Mentioned:
- MP Materials
- US Rare Earth, Inc.
- Criticals Metals
- Texas Mineral Resources
- Lionus Rare Earth
- Cleveland-Cliffs (a major US steelmaker that has pivoted to rare earth minerals)
Government Funding: The US government, through the Department of Defense, has provided "significant funding" to several of these companies, including MP Materials, Lionus Rare Earth, and USA Rare Earth. The speaker personally owns USA Rare Earth.

Stock Performance and Technical Analysis

The video delves into the stock performance of some of these rare earth companies, illustrating their recent volatility and potential for future growth based on technical analysis.

USA Rare Earth (USA R)

Recent Performance: The stock experienced a dramatic surge from around $9 a share to over $40 in a matter of weeks, representing a potential five-fold increase.
Profit Taking and Recovery: Following the surge, profit-taking occurred, and the stock saw a pullback. The speaker notes a potential buying opportunity around $27, with the stock moving back above the 13-day moving average, indicating a potential recovery.
Technical Indicators: The speaker points to "six Bollinger Bands broken," suggesting the magnitude of the stock's movement and its significance.
Speaker's Action: The speaker bought USA Rare Earth, sold half to lock in profits, and kept the other half to "let it run."

Cleveland-Cliffs

Pivot to Rare Earths: Cleveland-Cliffs, a major US steelmaker, is noted for its pivot to rare earth minerals, with development planned for Michigan and Minnesota in 2025.
Stock Movement: The stock saw a dip to $13 a share and then a rebound to $16 a share. The speaker questions if this is the extent of its potential, given its involvement in rare earths.
Overbought Conditions: The stock was previously overbought at $14 and has since seen further gains.
Long-Term Potential: The speaker believes that with money flowing into the rare earth sector, companies like Cleveland-Cliffs could see "drastically different" stock prices in one, three, or five years.

MP Materials

Significant Run-Up: MP Materials has also experienced substantial stock price increases. The speaker notes a move from around $16-$18 to $38, then a pullback to $30, followed by a surge to $82, and further fluctuations between $50-$60, eventually reaching $100.
Market Capitalization: MP Materials is a $14 billion company. The speaker contrasts this with tech giants like Apple (nearly $4 trillion market cap) to provide perspective on its size.
Technical Breakouts: The stock is described as "breaking the Bollinger band three times," indicating strong upward momentum.

Company Valuations and Investment Rationale

The speaker compares the market capitalizations of the identified companies to assess their investment potential.

MP Materials: $14 billion market capitalization.
USA Rare Earth (USA R): $3 billion market capitalization, making it about one-fourth the size of MP Materials.
Cleveland-Cliffs: $8 billion market capitalization.

The speaker expresses a preference for these three companies: Cleveland-Cliffs, USA Rare Earth, and MP Materials, indicating plans to discuss them further in his Discord community.

Conclusion and Call to Action

The speaker concludes by reiterating his belief that these rare earth companies represent some of the "best stocks to buy now." He anticipates continued government spending in this sector, especially after recent events (implied to be the government shutdown).

Speaker's Recommendation: The speaker is actively looking to make moves in his portfolio with these stocks and plans to share his trading activities in his Discord community.
Call to Join Discord: He encourages viewers to join his Discord for live trading updates and further insights, offering a discount code ("NEW") for membership.
Final Encouragement: The video ends with a call to action to "get out there and make some money."