Lynas Trading Halt — good news?

by Travis Johnson, Stock Gumshoe | April 29, 2009 1:24 pm

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Source URL: https://www.stockgumshoe.com/2009/04/lynas-trading-halt-good-news/


One response to “Lynas Trading Halt — good news?”

  1. brenda says:

    Well, it was indeed some big news — an offer by a Chinese company to buy a controlling stake. This shakes up part of the “strategic” rationale for buying Lynas, that they would have the only real “non-Chinese” rare earths supply.

    Of course, it also means they have enough money to actually produce, so it’s hard to criticize them for taking money from the one country that seems to have it in abundance at the moment. The stock is recovering nicely even with the massive dilution this will bring, since a company that can operate is obviously worth more than one that just owns a non-producing asset, but we may well see some political backlash as this deal goes through the approvals process in Australia. Keep your eyes peeled — if I were nervous or had a large position in Lynas I would probably shave off some of those holdings in this relief rally, but it’s a small position for me and I will probably hold and see what happens.

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