Shareholder Watchdog, 21 October 2010
We have witnessed a fair share of bubbles over the past 15 years: internet stocks, housing, crude oil, and Chinese stocks. We have had some success in identifying “bubbles” in individual stocks and warning the investment community about specific issues (including HUSA at $20.35 see here and PCBC at $5.11 see here).
Possibly the most voracious bubble in recent memory is occurring with Rare Earth Element (“RE” or “RE elements”) stocks. We have done some work framing the opportunities and risks within the RE elements space. After sifting through the hype, we believe there is tremendous risk in RE stocks and highlight Rare Element Resources (AMEX: “REE” $12.74/ TSX: “REC”) as a potential short opportunity, or at least a stock investors should avoid.