Topic: How To Invest

Hi Pat: Could you give me your opinion on the following stock: Neo Material Technologies? I appreciate the advice! Thanks.

Article Excerpt

Neo Material Technologies Inc., $8.51, symbol NEM on Toronto (Shares outstanding: 128.0 million; Market cap: $1.1 billion; www.neomaterials.com), buys rare earth elements and processes them into neodymium-iron-boron magnetic powders and zirconium-based engineered materials. Toronto-based Neo Material makes its products at plants in China, Thailand, Germany and North America. Neo’s Performance Materials division supplies 67% of its sales. This division makes oxides and salts out of rare earth elements. These materials are then used in catalytic converters, compact fluorescent lighting, computers, television display panels, optical lenses, mobile phones and electronic chips. Neo’s clients include Epson, Panasonic, Hitachi, BASF, Philips, Samsung and Canon. The company’s Magnequench division accounts for the remaining 33% of its sales. This division makes magnetic powder, which is used to make small, strong, lightweight magnets that are used in electronics, particularly small motors that run computer hard drives, copiers and CD and DVD players. In the three months ended June 30, 2011, Neo’s sales jumped 172.9%, to $216.1…