The Next Rare Earths Rocket W/ A Lit Fuse: Great Western Minerals

[zcarenow]

how many of you bought this stock when it was 1 cent just a year ago?

[zcarenow]

had i even knew about rare earth sector last year while it was at 2 cents, i would've bought 200k shares of Great Western for sure. Same for UCore

[MisterSilverBug]

Great Western Minerals owns Thorium assets. A tonne of thorium can produce as much energy as 200 tonnes of uranium, or 3,500,000 tonnes of coal. Just 8 tablespoons of thorium could provide the energy used by an American during his or her lifetime! With a thorium nuclear reactor, there is NO possibility of a meltdown.

[MisterSilverBug]

i got in at .49 last year :)

When Bloomberg reported on the rumor that Molycorp wanted to buy GWM the stock didn't pop as much as i was expecting

[rizinge]

Great analysis! I've been watching the rare earth market and Great Western for the last six months now, and it seems to be the single most understated and undervalued position out of all the rare earthe companies. This company is still under the mainstream radar, but quickly gaining traction by the U.S. Gov't, and various other heavy hitting entities involved in the rare earth market.

[Kerryman86]

could this be the next Freeport mcmoran

[WallStForMainSt]

@Kerryman86- Molycorp and Lynas will lead the REE sector as they will both be at full production and cash flowing by the end of 2012. I think Molycorp especially is a control stock of the REE industry and will be THE industry leader like Freeport, Potash Corp, Cameco and others are of their commodity sectors. I compare Molycorp to being able to buy Exxon Mobil before it became profitable. Lynas would be like buying BP or Shell or another oil major in the same scenario.

[WallStForMainSt]

@Kerryman86- Great Western though is one of the top 4 juniors below Molycorp and Lynas though. It will do very well in my opinion over the next 5-7 yrs as I outlined why in this video blog. They have a lot of positives going for it.

[MrVocalBaby]

I also forgot to ask. In your opinion, at 0.65, is GWG still a buy?

[WallStForMainSt]

@MrVocalBaby- Yes. I think it's a good time to start or add to a position in Great Western Minerals. Have some cash on the sidelines in case of a pullback but I plan on adding more soon if the price stays at these levels.

[MrVocalBaby]

Jason, you are fantastic! Thanks.

I spotted 2 companies recently, and would like to double check if you know something about them. They seems very undervalued. IBC advanced alloys, and Dejour. Thanks!

[WallStForMainSt]

@MrVocalBaby- I am not familiar w Dejour so I won't comment on that one. I will have to get back to you on that one after I look at it. IBC Specialty Alloys has a vertically integrated business model plus those processing facilities. I gotta admit it has caught my eye. I have not bought any IBC yet, but it's on my watch list and I am contemplating buying a spec position in the stock. Normally with a stock like this I might only buy 1,000 shares and limit my total risk.

[MrVocalBaby]

@WallStForMainSt Thank you!

[aaronbasile]

What do you think about Stans Energy? I know they aren't in as good of a positon as Great Western but the volume on that stock is more or less dead which is ideal for someone looking for a laggard in the rare earths producing sector.

[WallStForMainSt]

@aaronbasile- Check Dr. Michael Berry's Discovery Investing newsletter for more info about Stans Energy. Very exciting exploration discovery at Stans. They found a 3rd deposit around the other 2 know ones. The third one contains a lot of Beryllium which is selling for over $800/kg. How much has the stock price moved up in the last 4-6 months or more recently? I have not been paying a lot of attention to the actual stock price...

[aaronbasile]

@WallStForMainSt It's more than doubled in the last 2-3 months, but it's the volume that tells you that people still dont know about it. Before November, the average volume on it was around 30,00 a day. The volume has increased a little bit recently but most of the day the share price is inactive.

[Tortoisetoo]

Jason, I am a fan and like your commentaries. But why are you making you videos from your car? I think your opinions would lend more credibility from an office desk or other suitable environment. Just a friendly suggestion.

[WallStForMainSt]

@Tortoisetoo- Um thanks. People talk to me about credibility, but yet I know TONS of "financial advisors" and "financial professionals" who have fancy desks, expensive suits and are stupid salesman. They cannot pick winners and cannot invest their own money to make themselves or their clients money. The only way they make money is stealing from their own clients and selling them garbage financial "products" like mutual funds. Do you fall for people telling you lies in suits or someone genuine?

[WallStForMainSt]

@Tortoisetoo- My point about that rant is credibility shouldn't matter about fancy desks or fancy suits. Why do I have to wear a suit and a tie? My information is top notch is it not? In the financial world, lots of liars and losers and banksters who would steal money from their own mothers to make themselves rich wear fancy suits and a tie. Do you get the point I am trying to make?

[WallStForMainSt]

@Tortoisetoo- It's about the steak (content/information) and NOT the sizzle. Many clients of these "financial advisors" fall for the lie (sizzle) and don't know to look for the steak. I know because I've sat in the sales meetings and listened to managers talk about how to lie and BS in that sector. I'm sorry you don't like how I blog and deliver content, but that's genuine me and not FAKE ME sitting at a desk BSing you...

[WallStForMainSt]

@Tortoisetoo- Also, one last thing... Those jobs are sales jobs. They are called "investment advisors" or "financial advisors" and they look good in s suit and tie, fancy desk but they have no useful knowledge about what works and what doesn't, what's successful and what's not in investing and making money besides whatever the piece of paper handed to them says. I was told on a phone interview by one of these guys before I started my company 2 yrs ago "you are too smart to be a salesman for us"

[aaronbasile]

I'm up 50% on GWMGF I wish I had bought more though :/

[WallStForMainSt]

@aaronbasile- Yup. Me too Aaron. I only bought 1000 shares at .38/share. Whoops! 

[aaronbasile]

@aaronbasile I entered in at about the same price, I may be adding some funds tomorrow, if I end up doing so, I'll be buying more Great Western seeing as how AG doesn't have options yet.

[goldstockbull]

Very insightful Jason. I picked up Great Western about a month ago after reading your rare earth report and noticing it was undervalued relative to others in the sector. I recommended it to my subscribers at $0.40. Great pick!

[WallStForMainSt]

@goldstockbull- Thanks Jason. I think Great Western Minerals will easily be over a buck in the next 2-3 months based on a lot of positive factors both for the company and for the REE market in general. I also think the company is a takeover target and the Molycorp/Hitachi JV company will most likely buy them out in the next 2 yrs.

[modawoud]

Jason,

Great video blog. I just brought Great Western today! I expect good things from this company.

[WallStForMainSt]

@modawoud- Thanks Mo! It's a good long term buy.