Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside* |
|---|---|---|---|---|---|---|---|
| 14 Apr, 25 | REEMF | Speculative Buy | USD 0.86 | USD 0.91 | USD 0.95 | 1 day | 10.5% |
*Potential Upside (%) indicates the expected percentage increase from the Entry Price to the Target 2 Price.
Data Powered by EOD Historical Data (“EODHD”).
Rare Element Resources Ltd. engages in the exploration of mineral properties in the United States. It holds a 100% interest in the Bear Lodge property that comprises the Bear Lodge REE project and the Sundance Gold project located in Crook County, northeast Wyoming. Rare Element Resources Ltd. is headquartered in Littleton, Colorado.
Substantial Equity Financing: The company raised $35.3 million in net financing in 2024, significantly strengthening its capital base and enabling continued operations and development
Significant Increase in Cash Reserves:: Cash and cash equivalents increased from $3.6 million in 2023 to $26.7 million in 2024, reflecting improved liquidity and financial flexibility
Deterioration in Shareholder Dilution: Shares outstanding more than doubled, from 213 million in 2023 to 516 million in 2024, potentially diluting shareholder value
Widening Net Loss: Net loss increased by over 105%, from $9.0 million in 2023 to $18.5 million in 2024, largely driven by higher exploration and evaluation expenses
Rare Element Resources Ltd. is a pre-revenue exploration company with rising operating losses and heavy reliance on external financing, making its future viability highly dependent on successful project development and continued access to capital
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 0.86 | 0.78 | 0.91 | 0.95 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
The 21-day and 50-day moving averages ($0.73 and $0.74) are both trending upward and providing support for the price, nearing a bullish crossover. Additionally, the 14-period RSI is positioned above the midpoint, further reinforcing a positive outlook. Recent spikes in trading volume coincide with the breakout above the $0.70 resistance level, indicating strong bullish momentum.
As per the above-mentioned technical indicators analysis, a ‘Speculative Buy’ rating has been given to Rare Element Resources Ltd (OTC: REEMF) at the current market price of USD 0.86 as of 14 March 2025 at 08:45 AM PST.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Basic Materials Industry: Other Industrial Metals & Mining
| Company | Change (USD) | Price (USD) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) | Enterprise Value to EBITDA (x) | |
|---|---|---|---|---|---|---|---|---|
| REEMF Rare Element Resources Ltd |
-0.005 0.53% | 0.94 | - | - | - | 3.95 | -2.8603 | |
| BHP BHP Group Limited |
1.01 2.13% | 48.66 | 13.32 | 11.30 | 3.15 | 3.88 | 3.35 | 6.30 |
| BHPLF BHP Group Limited |
- -% | 23.30 | 13.29 | 11.21 | 3.18 | 3.85 | 3.35 | 6.30 |
| RTNTF Rio Tinto Group |
- -% | 70.18 | 17.11 | 11.85 | 2.81 | 2.79 | 2.88 | 7.27 |
| RTPPF Rio Tinto Group |
- -% | 56.03 | 14.16 | 9.87 | 2.26 | 2.29 | 2.35 | 5.93 |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is April 14,2025. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
Disclaimer :
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