Lynas Article

Yesterday I published an article on rare earths and Lynas on Seeking Alpha.

I am blown away by the response to this article. It's has one of the highest page views I have written. I thought I was analyzing a small, underresearched industry. Turns out there is a large cohort who were already following it. That's not necessarily a good thing.

Now, the Malaysian election. As far as I can tell, the new party is not "populist" in the sense that the new government in Italy will be. Rather it's a reaction to corruption on a very large scale. It's also a reaction to a recent drop in economic growth. However, if Malaysia wants to get out from under the "middle income trap" it's going to have to upscale its exports. That means foreign capital and foreign technology. So they would be foolish to punish Lynas simply to appease the scaremongers. However, this all depends on Lynas continuing to run without environmental problems. If they screw up, all bets are off.

I bought a little more Lynas on the dip last night. This company has a beta to the S&P of 3, so be careful.