Topic: How To Invest

Your opinion on Rare Element Resources please. Thanks.

Article Excerpt

Rare Element Resources Ltd., $5.68, symbol RES on Toronto (Shares outstanding: 44.1 million; Market cap: $250.5 million; www.rareelementresources.com), holds a 100% interest in the Bear Lodge property, which contains what the company believes is one of the largest rare earth element deposits in North America. The deposit also shows traces of gold. Rare earth stocks have attracted a lot of investor interest over the years, because these elements are used in a variety of modern devices and applications, including catalytic converters and petroleum refining; magnets in small and large motors; glass additives and glass polishing compounds; rechargeable batteries; television and computer screens; lighting; X-ray machines; and lasers. Rare Element Resources is now conducting a prefeasibility study on the economics of building a mine at Bear Lodge. It holds cash of $59.5 million, so it has the funds to complete the study. A positive result would push the shares higher, but they could also drop if investor interest in rare earth stocks wanes. Rare Element…