The Lynas Rare Earths Ltd (ASX: LYC) share price has reset its 52-week low five times this month.
Talk about being dragged along the bottom, right?
The Lynas share price has been on a downward spiral since the first week of February.
It’s been a rough time for shareholders — but also a buy-the-dip opportunity for true believers.
The ASX rare earths stock tumbled to $6.25 per share yesterday. Lynas is currently trading for $6.53 per share, up 1.48% on Friday so far.
Since the close on 1 February, the Lynas share price has fallen by 33%.
Let’s take a look at what’s going on.
What’s putting a dampener on the Lynas share price?
Well, the hits have just kept on coming for this ASX rare earths stock.
In early February, the company’s Malaysian licence was renewed but not with the conditions it wanted. So, Lynas has begun an appeal process which is still ongoing today.
Then on 27 February, the company reported its 1H FY23 results, revealing a 32% cost increase.
A few days later, electric vehicle (EV) giant Telsa Inc (NASDAQ: TSLA) announced its next-generation EVs will use a permanent magnet motor without rare earths components.
Typically, EVs use a magnet with a rare earths alloy mix of neodymium, iron, and boron (NdFeB).
This prompted a sell-off on ASX rare earths stocks. The Lynas share price dropped by 6.8% on the news.
Many experts said this was an overreaction.
Among them were specialist critical minerals research and advisory firm Adamas Intelligence.
Adamas said its research showed Tesla only accounts for 2% to 3% of global NdFeB demand.
Broker tips 25% upside from here
The post The Lynas share price has clocked five 52-week lows this month. Broker tips 25% upside appeared first on The Motley Fool Australia.
Should you invest $1,000 in Lynas Corporation Limited right now?
Before you consider Lynas Corporation Limited, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Lynas Corporation Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
See The 5 Stocks
*Returns as of March 1 2023
(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()
More reading
- ‘Top quality’: Expert picks 2 ASX 200 shares to buy at a nice discount
- Lynas share price resets 52-week low twice in one week
- Tesla-induced sell-off of ASX rare earths shares like Lynas overblown: experts
- Lynas share price rebounds on $200m Japanese Government investment
- Lynas Rare Earths has plunged 20% in a month: Is it a buy?
Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
from The Motley Fool Australia https://ift.tt/rlEKFi6
Stock Pick 