Should You Sell MP Materials Before 2024 or Wait For Rare Earth Hype Revival?

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The question of whether to sell MP ($NYSE:MP) Materials before 2024 or wait for rare earths hype revival is a complicated one that requires careful consideration. These materials are used in the manufacture of a wide range of products, including electric vehicles, consumer electronics, and defense applications, among other things. The prices of these materials have been volatile in the past few years, with many investors unsure whether to sell or hold onto their MP Materials in anticipation of a revival of the rare earths market.

First, rare earths prices have been particularly volatile in recent years and may not recover as quickly as some investors anticipate. Second, although MP Materials’ holdings are large, they may not be able to sustain their current price if demand for rare earths does not return. Selling now means that investors can avoid any further losses and potentially realize gains from selling their shares. On the other hand, there are some compelling reasons to wait until 2024 before selling MP Materials. For one, the rare earths market is expected to reach a tipping point in the near future, with demand for these materials set to skyrocket given their use in electric vehicles and other emerging technologies.

Additionally, many countries, such as China, have been stockpiling rare earths in preparation for the anticipated surge in demand, suggesting that prices could increase significantly. For investors who are willing to take on additional risk, holding onto MP Materials until 2024 could potentially lead to a significant return on their investment. Ultimately, the decision of whether or not to sell MP Materials before 2024 is up to individual investors and their risk tolerance. Those who are more risk averse may prefer to sell their shares while those who are willing to take on more risk may prefer to wait and see how the rare earths market plays out.

Stock Price

On Thursday, MP MATERIALS opened at $16.2 and closed at $15.9, a decrease of 1.3% from their previous closing price of 16.1. Considering the current state of the stock, investors may be skeptical of waiting for the stock to rebound, worried that their original investment may not be worth it in the long run.

However, with rare earths expected to become increasingly valuable over the next few years, waiting to sell could potentially lead to a larger return for investors. Ultimately, the decision to sell or wait for the rare earth hype revival will depend on each individual investor’s risk tolerance and financial goals. Those looking to make a quick profit may choose to sell immediately, while those with a longer-term outlook may decide to wait and see if the rare earths market recovers. Whichever option investors decide on, it is important to consider all factors before making a final decision. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Mp Materials. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Mp Materials. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Mp Materials. More…

Key Ratios Snapshot

Some of the financial key ratios for Mp Materials are shown below. More…

Analysis

We have conducted a thorough analysis of the fundamentals for MP MATERIALS and based on our Star Chart classification, we have concluded that this company is a ‘rhino’, meaning it has achieved moderate revenue/earnings growth. This type of company is typically attractive to investors who are looking for steady growth or a low-risk investment. The MP MATERIALS health score is 8/10 and this indicates that it has excellent cashflows and debt structure, making it capable of withstanding economic downturns without the risk of bankruptcy. We also found MP MATERIALS to be particularly strong in asset management, growth, and medium in profitability. However, it is weak in dividend yield, making it less attractive to those investors seeking income-focused investments. More…

Peers

In recent years, the manganese industry has seen increased competition between MP Materials Corp and its major competitors South Manganese Investment Ltd, Chongyi Zhangyuan Tungsten Co Ltd, and Esrey Resources Ltd. While each company has its own unique strengths and weaknesses, MP Materials Corp has emerged as the leading player in the industry due to its large scale operations and efficient production processes.

– South Manganese Investment Ltd ($SEHK:01091)

South Manganese Investment Ltd is engaged in the business of manganese ore mining and beneficiation in the Guangxi Zhuang Autonomous Region of China. The company has a market capitalization of 1.89 billion as of 2022 and a return on equity of 23.93%. South Manganese Investment Ltd is involved in the production of high-quality manganese products used in the steel industry. The company’s products are used in a variety of applications including welding, casting, and steelmaking.

– Chongyi Zhangyuan Tungsten Co Ltd ($SZSE:002378)

Chongyi Zhangyuan Tungsten Co Ltd is a Chinese company that mines, processes, and sells tungsten products. It is one of the largest tungsten companies in the world, with a market cap of $6.55 billion as of 2022. The company has a return on equity of 12.18%. Zhangyuan Tungsten is headquartered in Jiangxi Province, China.

– Esrey Resources Ltd ($OTCPK:LNGYF)

The company’s market cap is 80.14k as of 2022. The company’s ROE is -0.36%. The company deals in oil and gas.

Summary

MP Materials is a rare earth producer, which has been subject to volatile prices due to the China’s export restrictions on rare earths. Investors should consider the long-term outlook for rare earths when making an investment decision. In the short-term, price movements are likely to be driven by speculation and news events. It is suggested that investors sell their MP Materials before 2024 in order to take advantage of current high prices.

Alternatively, investors could hold their MP Materials in the hope of a revival in rare earth hype. In either case, investors should remain updated on news and developments in the rare earth market to make an informed decision.