On Monday on my subscription JubakAM.com site, I made Lynas Rare Earths (LYSDY) the eighth pick in my Special Report: 9 Picks to Make Money in This Bear Market and said that I would add it to the Jubak Picks Portfolio today. This is what I wrote in my Special Report: “This isn’t a Fed pick, an economic growth pick, or a Bear Market bottom pick. It’s a straightforward U.S.-China trade war pick. This week the national congress of the Chinese Communist Party will wrap up proceedings by choosing current President Xi Jinping for another five-year term as the country’s leader. With that ceremony behind him, I expect President Xi will quickly move to announce retaliation for the restrictions that the Biden administration slapped on purchases of the most advanced U.S. chips and chip-making equipment by Chinese companies. I can’t think of a place where the U.S. high technology economy is more vulnerable than in its reliance on China for its supplies of the rare earth minerals necessary for batteries, electric cars, wind turbines, and smartphones. Lynas is one of the few non-Chinese sources of raw rare earth minerals and, even scarcer, one of the very, very few non-Chinese companies that process rare earth minerals. As such I see this stock as one I want to own as this newest trade war gets some momentum. You can see how this trade war might work in Lynas’s favor in a recent funding deal. In September state-owned Japan Oil, Gas and Metals National, and Japanese trading house Sojitz invested $9 million to buy an additional stake in Lynas Rare Earths to help the Australian miner expand its Mt. Weld mine. In August Lynas announced that it would invest $335.35 million to expand capacity at its Western Australia mine.”The stable long-term supply of rare earths is extremely important for the Japanese manufacturers, given the increasing demand for rare earths as a key material for magnets that are indispensable for environmentally-friendly products such as motors for EVs and wind power generators,” the Japanese companies said. Lynas also operates a rare-earth processing plant in Malaysia and is looking to open a U.S. processing plant.” Lynas was also one of my Special Report Own the Future for Pennies 10 Penny Stock Picks. The ADRs are down 38.29% for 2022 as of the close on October 17. They closed at $4.82 on October 18, up 2.15%. I’m adding them to the Jubak Picks Portfolio with a target price of $6.12.
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