Neo Material Technologies (NEMFF)

[Renee]

NEMFF: Plan of Arrangement. Pursuant to the Arrangement, each Neo shareholder who is not an eligible holder (?Non-Eligible Holder) will receive in exchange for each common share of Neo (?Common Share"), at the Non-Eligible Holder?s election: (i) 0.4242 common shares of Molycorp (the ?Share Consideration?)(each whole common share, a ?Molycorp Share?); or (ii) C$11.30 in cash (the ?Cash Consideration?); or (iii) a combination of Share Consideration or Cash Consideration, subject in each case to pro-ration. TSX understands that the Molycorp Shares are listed on the New York Stock Exchange under the symbol: MCP. A Neo shareholder who: (i) is a Canadian Resident; and (ii) is not exempt from tax under Part I of the Income Tax Act (Canada) (an ?Eligible Holder)will receive in exchange for each Neo Common Share, at the Eligible Holder?s election: (i) in respect of each Neo Common Share that is an Eligible Share, 0.4242 exchangeable shares (the ?Exchangeable Shares?) in the capital of Exchangeco (?Eligible Share Consideration?) or a combination of Cash Consideration and Eligible Share Consideration, subject in each case to pro- ration; or (ii) in respect of each Neo Common Share that is not an Eligible Share, if any, either the Cash Consideration of C$11.30 or the Share Consideration of 0.4242 Molycorp Shares; or (iii) a combination thereof, subject in each case to pro-ration. The Exchangeable Shares will not be listed on TSX, there is no public market through which the Exchangeable Shares may be sold and no public market is expected to develop for these shares. For a detailed description of the principal terms and conditions of the Exchangeable Shares, reference should be made to page 35 of the Circular. **

http://www.otcbb.com/asp/dailylist_detail.asp?d=06/13/2012&mkt_ctg=NON-OTCBB

[murrstir]

Is this Molycorp deal good for us LT holders?

I received my voting instructions recently.

Thoughts welcome.

[murrstir]

OOps, i forgot that politics always screws it up somehow though.
Never a dull moment around here . . .

[murrstir]

And now even Mr. Obama is in the mix!

YaHoo! . . . for holders of REE that is.

[iheartweimers]

Important news
http://www.reuters.com/article/2012/03/13/us-china-trade-eu-idUSBRE82C0JU20120313

[billfishnow]

BOUGHT SOME MCP CALLS AT $ 35 --FEB 2013

I am not an option guy.. but i bought some calls for 2013 Feb..
Paid 2.75 for the MCP calls --so in about $38. for next year..

I was already offered a 20% profit before the end of the day friday..
moved back now..

I would bet MCP will be in the mid $ 50 range a year from now..IMO

I sold most of my NEMFF and put some of the profit in the calls..

A pal of mine--thinks MCP will be buying more..

Which stocks do you guys like again...??

Here is a 10 bagger in 3 years... PYMX

thanks

[murrstir]

Nice post.
Please contact me directly at [e-mail]

[iheartweimers]

It did, and I want to wait a week to see if that holds or
dips back. March is supposed to be an active month for
REE orders, and the spotlight may fade come April. Of
course they kept the NEMFF secret well, who knows what
is next! At any price I believe MCP will be much higher.
And I do not believe the Chinese quotas.

[iheartweimers]

http://www.raremetalblog.com/2012/02/heavy-rare-earths-the-16-most-advanced-projects.html

One of the prominent experts on earth on the subject of
Rare Earth Elements is Gareth Hatch. The link I have
provided is interactive, meaning one can click on the
various file headers and open them. It has been months
since I have done all of my personal research on this, but
I believe the answers to most questions are contained in
this publication.
I suggest everyone copy this and file it, I have posted it
before on several iHub REE stock boards but it never gets
stickied so slides down and gets lost.
Last year at the height of the frenzy caused by the Chinese
export quota, I spent a lot of time researching REE companies
and took positions in various degrees in four. I may be in
error, but I believe I remember speculation that AVL was a
takeover possibility because they have a heavy metals play
in the US, besides the Strange Lake property in Canada.
MCP has plenty of money for this evidently, from Chile as
the CEO mentioned in the Q4 as well as their own sales.
I am planning on buying more MCP, keeping LYNAS, AVL
and QRM. A cheap but somewhat risky play that interests
me is DCHAF. NEMFF board I guess, will merge along with
the companies?
An interesting question was raised on another board and
should be on your minds too. How is this treated tax-wise
if investors need to hold for one year so that it is taxed as
a Capitol gain, and can't due to merger?

[murrstir]

MCP closed up $4.91 today?

Seems the market also thought they got NEM on the cheap.

[iheartweimers]

Transcript of merger CC with MCP
http://seekingalpha.com/article/424071-molycorp-s-ceo-discusses-acquisition-of-neo-material-technologies-transcript?source=email_rt_article&ifp=0

[murrstir]

I'm on the fence. Here are a few thoughts of mine.

I think MCP got NEM on the cheap side, I wanted more, but I may be overly optimistic regarding the risk assoc. with operating in China. I think a counter offer would really generate some more interest.

As NEM CEO Konstantine (whatever) repeated on BNN today, NEM now has security of supply for RE; so that is good for them.

But if I understand this all correctly, MCP & their Mountain Pass project has LREE only, while NEM specializes in HREE. Someone else also mentioned this today; that MCP now needs an HREE supplier to complete the pie.

Until today, I was going to stay away from MCP, but tomorrow or the next day, they may also announce the M&A of GWG:TSX as well, and if so,I would be on board with the whole venture.

[murrstir]

I'm on the fence. Here are a few thoughts of mine.

I think MCP got NEM on the cheap side, I wanted more, but I may be overly optimistic regarding the risk assoc. with operating in China. I think a counter offer would really generate some more interest.

As NEM CEO Konstantine (whatever) repeated on BNN today, NEM now has security of supply for RE; so that is good for them.

But if I understand this all correctly, MCP & their Mountain Pass project has LREE only, while NEM specializes in HREE. Someone else also mentioned this today; that MCP now needs an HREE supplier to complete the pie.

Until today, I was going to stay away from MCP, but if tomorrow or the next day, they may also announce the M&A of GWG:TSX, for example, as well, I would totally be on board with the whole venture.

[iheartweimers]

So what do you think now? If you look at MCP today I think everyone should hang on to Neo just to exchange for MCP!

[billfishnow]

We are winners on this one..

Think there is some extra daytrade play on this for a few days??

I think Moly will move back up this year also..

they got creamed in the malaise we had last fall..

everything this year is all about electronics and healthcare/biomed

may be a good year to hang in ..

any more opinions??

Going to roll some long term dollars into PYMX--10 bagger 3 years IMO

[iheartweimers]

I bought AVL last year for just that reason as they have a
adjoining claim in WY, I believe.

[murrstir]

Maybe the first? of major M&A in the sector. Great fun to come watching the juniors!

[iheartweimers]

I'll watch too, I wanted to add some more MCP if it went
under $25 but I now see it has traded after hours to $26.66.
I can see some of the other REE stocks with room for big
appreciation, and one can buy a lot more shares for the
same bucks. Good luck, I'd hold for a while if I were in
your shoes.

[murrstir]

Excellent points. However, my sense says there will be people, or computers, that will want to get into the action tomorrow on the news. Should be fun to watch, either way. I will be somewhat glued, taking away from more pressing duties of course, LOL

[iheartweimers]

I have to say I couldn't guess what happens next, Neo
closed today at just about the MCP purchase price, so
I would make a guess that Neo won't appreciate more
Than 1/5 the value of a share of MCP. That is a little more
than $5.20 at today's close, so say max of $13.25 value
for Neo. There might be a discount that needs to be put
in as owners will have a liquidity problem for a few days
as the shares are exchanged.
If you don't already, you might read the MCP board for
IHub. I just read all of the CC recently held to report Q4
and it is very positive for earnings later in the year.

[murrstir]

Also following MCP but not a buyer.
Now the picture changes.
Still, put a premiumm sell order on NEM, bidding war unlikely at this point but ya never know, right?

If it doesn't take then I may become a proud owner of MCP after all. I hope you are right this time.

[murrstir]

Should hit CNBC now. SO, are you going to hang on to the Molycorp stock that comes with the deal?
This aquisition changes the face of MCP in a way I didn't quite expect. Got any near to mid term thoughts? Of course closing of deal is a few months off but whatever.

I'm thinking;
Near term - MCP should accelerate while people get their heads around it? (disclosure:not currently holding MCP)
Mid term - little or no change
Long term - we're all dead.

[iheartweimers]

I bet you are!! I own MCP and follow them closely.
I can only guess you will own it too since they paid
1.3 billion for Neo. Congratulations, hope you bought
a lot. You get $8.05 in cash, .122 MCP shares for each
one. Hang on to the MCP, by the end of the year it
may be up $10.

[murrstir]

By the time I read your post it was too late. My low bid was accepted yesterday. But today I am surprised and a bit happy I was tardy.

[day-trader]

Neo Material reports record 2011 financial results

http://www.newswire.ca/en/releases/archive/March2012/08/c3035.html

[day-trader]

Molycorp agrees to buy Neo Material for $1.3 billion (CDN)

www.marketwatch.com/story/molycorp-agrees-to-acquire-neo-material-2012-03-08

[billfishnow]

I have looked at past earnings weeks..

always had big drops running up to earnings..
nervous nellies..

I am a little worried that this quarter is down because if you remember last october november crash--it was bad..

they may have had a lot of cancellations in orders..

regardless...this should be a $15 pps stock..

maybe we will get some attention after 8 good quarters..

All it would take--is some CNBC time--up up

good luck on friday..

I picked up some more yesterday on low..

[iheartweimers]

I wouldn't, since there is no ex-date to worry about. In this
market far too much value is attached to a penny or two
miss of a guess made by an armchair analyst that has no
clue about what truly determines the value of this company.
Which is mainly demand by Western countries.
If you are watching on Friday I would think you will have
ample time to judge market reaction because it's not like
many are watching this. Look at volume history for a clue.

[murrstir]

After a 4% drop today, should one be buying ahead of earnings?

[murrstir]

I am surprised you follow REE companies but have not found NEM until recently.
Lets see what happens Friday. Should be no less than good news.

[iheartweimers]

I invest in a number of REE companies and was not
familiar with NEMFF until I read this complimentary
article that mentioned it.

http://seekingalpha.com/article/400221-rare-earth-metals-a-stock-picker-s-market?source=yahoo

I follow four other iHub REE boards, want to look at this
one also.

[murrstir]

My info was off a bit or recently updated. The earnings are now March 9.
http://www.digitaljournal.com/pr/610648

[murrstir]

RE: "I think a lot of big orders are reving up right now.. "

Wondering where you can find that info?

Last 2 or more earnings did not much, so why would it change things now? The recent reaction to earnings news has me stumped.

Maybe the rush to alternatives is not working out so well, or that China quota may meet further demand.

I actually hold a larger position in GWG.tsxv(gwmgf)

glty sir

[billfishnow]

Fingers crossed--earnings next week..

this stock gets no respect...

I cannt imagine why its not a $20 pps ..
I hope this earnings is above .30ps

It was a slow 4th qtr for some companies..
had the big crash in October..
I think a lot of big orders are reving up right now..
so next quarter ought to be great..will be a buyer again before
may 10th ?? earnings announce..

good hunting..

got any others in this space??

Look at PYMX--gamechange bio--will be $50 in 5 years...

[murrstir]

Hi, Next earnings March 8. Should be good given last 2-4 quarters, IMO

Last target consensus I saw was $14.56, so aways to go yet on the upside.

IMO Risk is purely the Asian location and unpredictable politics, but lets not forget they are the important middleman!

IMO I like this story and the mgt. Takes some optimism though, don't ya say.

[billfishnow]

When are earnings coming out?? March 1 ???

If the earnings are .50 a share..isnt this a a $15.00 stock??

What am i missing here??

The sector got smashed last year--but their earnings are going straight up..

Seems to me that $ 2.00 earnings would put this stock in the $ 20 range on a 10X PE..

Is there a lot of news we dont know??

Anybody in this stock??

[billfishnow]

The earnings are great.....

This sector has been bashed the last 4 months--not this stock..

These guys are way undervalued just by the EPS...

IMO this should be a $ 15 to 20 stock..

Anybody on this board--new to the stock..

Like some feedback from followers..

billfish

[murrstir]

does anyone know what happened with the PPS today?

[Pro-Life]

10 Comps from the REE sector:

http://stockcharts.com/freecharts/candleglance.html?AVL,ARAFF,GEM.V,REE,GWG.V,LYSCF,QRM,NEMFF,UURAF,REMX|B|H14,3

[murrstir]

NEM was a number one top pick today on BNN's Market Call Tonight.

The guest fund manager did not even mention their recent NR to buy up to 10M+ shares in a buy-back program. All he knew was what their internal screening told him. He predicted a $15 high in no time.

Obviously not following the news that made it pop today, but gave us good air time anyway. I'm sure he has a lot on his radar these days, so I forgive him a small somewhat for missing that.

[murrstir]

again, low volume on today's slide.
large bid/ask gap at the close
therfore not to worry at this point

[murrstir]

bid ask diff is .72 cents at the close

[murrstir]

NEM looking great for the week
all positivity going forward
can't wait for Q2 earnings, or whatever

[murrstir]

thanks for that post
obviously this resource has many more challenges than we first thought upon entry. so i like NEM for their value added expertise and contacts ... worth something to me

[Pro-Life]

Rare earths: China always one step ahead of the West
Frik Els | July 20, 2011

http://www.mining.com/2011/07/20/rare-earths-china-always-one-step-ahead-of-the-west/

When news broke Thursday last week that China was raising REE export quotas for the second half of the year, ostensibly in reaction to a WTO ruling, it was greeted with some surprise and a measure of relief by the makers of anything from iPods to lasers to stealth helicopters.

But as the implications of the announcement on future pricing of the 17 elements begin to sink in some analysts are pointing out that rather than easing the pressure on manufacturers who need rare earths, China’s move was aimed at cutting off at the knees development of mining projects outside its borders.


Karon Snowdon and Dr Ting Ming Hwa, Asian Studies Centre, Adelaide University spoke on ABC Radio Australia on Wednesday about the consequences of China’s lifting of quotas:

- SNOWDON: Although far from rare, the minerals are difficult to process and have varying degrees of radioactivity and other environmental problems. And China had lower standards and cheaper labour. But when China dramatically cut exports quotas last year and by a further 35% this year the price and the nervousness of its trading partners rose. They rushed to find new supplies. Now China has relaxed the quota, doubling exports back to 2010 levels – a move Dr Ting Ming Hwa from Adelaide University says is aimed at protecting its market dominance.

- TING: And I would say this relaxation of quotas by China is perhaps to dampen the exploitation of other sources other than outside of China

- SNOWDON: To protect their market share you’re saying?

- TING: Yes. And by relaxing the quota it might just affect the prices of rare earths thereby undermining the investment in other countries and in the long run that would shore up the status of China in this industry.


Sally Lowder of The Critical Metals report spoke to Rick Mills on Tuesday. Here is what the respected investor said about the prospects of REE mining projects outside China:

- A lot of deposits were considered 20 years ago. The Japanese using Sumitomo scoured the earth looking at REE deposits. Others, including Hecla Mining Co., did the same. But the metallurgy didn’t work then and still doesn’t today. It wasn’t a matter of price; it was simply too complicated, too time-consuming and way too expensive to remove the rare earths.

- When you add that to a lack of infrastructure at many of these deposits, I just don’t see how these companies are going to be competitive in the marketplace. I look for mineralogy, metallurgy and location, location, location. To compete, you need all three.

- A lot of deposits will be culled as people realize how much work it will take for a junior to move forward and fill that coming supply gap.

[murrstir]

Yes. although obscure twenty years ago
they are now essential to our (grand)children
funny how that works.
NEM is a value-added company, not a miner
so we are cool right? as long as we have access to material . . .

[Pro-Life]

The market in general is still appreciating the REEs... onward!

[murrstir]

looks like the market has rethought the bad news about Sino Forest?

[Pro-Life]

For the week: -2.62%

[Pro-Life]

-4.92% is the scorecard for the week...