Topic: How To Invest

Hi Pat: I don't have any penny stocks, but Quantum Rare Earth Developments is intriguing. Any thoughts?

Article Excerpt

Quantum Rare Earth Developments Corp., $0.13, symbol QRE on Toronto (Shares outstanding: 86.0 million; Market cap: $11.2 million; www.quantumrareearth.com), is developing its 100%-owned niobium project at Elk Creek, Nevada. The company believes this property could contain North America’s largest, highest-grade niobium deposit. Niobium is a rare metal that when used as an additive makes steel stronger, more heat resistant and easier to weld. Niobium is widely used in automobiles and oil and gas pipelines. Right now, China accounts for about 25% of worldwide niobium consumption. Quantum acquired the Elk Creek site, a former Molycorp project, in 2010. Molycorp drilled 110 holes in the 1970s and 1980s. Now, with rising niobium prices, Quantum aims to define a large, mineable resource. The company has also identified what it believes is a high-grade rare-earth deposit 2.5 kilometres away from the niobium deposit. So far, the company has drilled two holes at its niobium deposit and three on the rare-earth site. In December 2011, Quantum raised $777,850…