REEI Stock Is Thursday’s Rare Earth Play

On March 21, 2012, in Featured Plays, by

Today’s alert CSOC was green all day, and then during the last hour of trading, the bids were hit right up to the closing bell! But that doesn’t mean the entire day wasn’t successful. CSOC opened at .013 and ran quickly to .015 for a quick 15% in gains.

We admit, this is probably one of those plays that would have benefited from an “at the bell” release, but the after hours news was something we just couldn’t ignore. At its high point, CSOC was up about 35%! CSOC did provide one or two bounce opportunities throughout the day as well - one of our members told us they traded CSOC from .012 to .0135 for over 10% in gains.

FORGET TODAY’S PLAY! We found something that could be even better! Everyone loves liquidity, and that’s exactly what we found in tonight’s play. This company just witnessed volume it probably has never dreamed of! The good news doesn’t end there - after the closing bell yesterday, the company issued a press released regarding an acquisition of a property said to be worth $10M! The best part is that all this is happening to a stock trading under 3 cents per share!

Our new alert is:

REEI - REE International, Inc

The first thing you need to know is that China has a choke hold on a small, but very valuable slice of the natural resource pie. It controls about 97% of this segment. It uses about 60% of the world’s output and it is creating a monopoly that can send prices sky high.

Since arriving on the mining scene in 2011, REEI has positioned itself to capitalize on one of the most potentially profitable situations in the entire mining and mineral market: rare earths.

REEI is positioned to crack a market with prices that could double, triple or quadruple in the coming year. It’s like having the chance to get in on the gold market before its meteoric ride!

In mining and minerals there are the big players who do it all. Then there are the smaller, nimble companies who focus on exploring and bring resources to the forefront. Typically, when these exploration players find something of real value, they are noticed. And when that happens the big players either join them to develop a resource or buy them. In either case, this process leads to driving the shares of the smaller player up.

Who is REEI ?

Ree international, inc. says they are a “US-based exploration and mining company focused completely on rare earth elements, primarily tantalum and niobium. Tantalum is primarily used in the manufacture of capacitors for the technology world. The next time you use your cell phone or your iPod you are using tantalum-based capacitors. Drive a hybrid car and you are using “rare earths”!

You can visit the company’s website here.

What Exactly Are Rare Earths Used For:

While you may not have heard much about them, rare earths are an important part of our technology and industry.

Tantalum, for instance is used in the production of electronic components, mainly capacitors and some high-power resistors. Tantalum electrolytic capacitors exploit the tendency of tantalum to form a protective oxide surface layer.

Because the dielectric layer can be very thin (thinner than the similar layer in, for instance, an aluminum electrolytic capacitor), a high capacitance can be achieved in a small volume. This creates the size and weight advantages that are so attractive for portable telephones, personal computers, and automotive electronics.

Without Tantalum and other rare earths, many of the high tech innovations we rely upon would not be available to us.

5 Things We Like About REEI:

  • Rare earths are in huge demand and growing fast - Today great efforts are being directed toward finding new sources of rees. Not only to enable a release from China’s monopoly on rare earths, but help localize over $1B value of rare earth products consumed in the U.S.
  • China controls world supply and may be cutting back - In the past ten years China has shifted to its position as the world leader in rare earths, producing about 97% of the world’s needs. China also consumes about 60% of the world supply. Now, they’ve begun choking the world by restricting exports because the need the supply they are generating internally. Suddenly everyone is trying to find a new source for rare earths and REEI can fit the bill perfectly.
  • No replacement for rare earths - The high tech and other industries require rare earths in manufacturing major product lines. Everything from cellphones to iPads require the important materials. What’s more important is that these elements cannot simply be replaced with another material. In many of the applications where they are used, they are the only material that can do the job.
  • Pennies per share - REEI is on track to begin its development and production of rare earths, begin generating a significant revenue stream and grow at a near exponential rate. Yet, being new to the market and hovering under the radar of wall street, the company remains priced at just pennies per share.
  • Yesterday’s press release:

REE International Acquires Rare Earth Property With Estimated Value of $10M

03/20/12 - REE International, Inc., a U.S.-based mineral exploration company focused on the exploration and production of rare earth elements, today announces the acquisition of a rare earth property in Port-e-Kiatuma, Guyana. REE International recently received approval to conduct business in Guyana by the Guyana Geology and Mines Commission.

The newly acquired property covers 44 square miles with over 200 concessions. According to initial estimates by the Guyana Geology and Mines Commission done in 2009, the initial estimates of Columbite-Tantalite believed to be in the ground are in excess of $10M dollars at today’s prices.

As you can see, REEI is attempting to make an imprint in an extremely lucrative market. When you look at all the details, it sure seems like rare earths would be classified as “inelastic”, and we all know the amount of money inelastic products can draw in.

Stay tuned for more information on REEI !

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