Insider buying most definitely is the depths of the summer doldrums; it was damn near nonexistent last week. With a roster as thin as a stick man, we decided to highlight a speculative flyer.
Liberty Star Uranium & Metals Corp. (LBSR) Independent Chairman, Secretary and Treasurer Peter O’Heeron acquired 1,410,652 shares of stock, which sounds like a lot, but at an average price of $0.0461 per share. A total investment of $65,031.
Liberty Star Uranium & Metals engages in the acquisition and exploration of mineral properties in Arizona and the Southwest of the United States. The company explores for copper, molybdenum, gold, silver, lead, zinc, manganese, and other metals, including rare earth elements.
Its principal property is the Hay Mountain project that comprises 35 mineral exploration permits covering an area of 12,878.18 acres, as well as 93 federal lode mining claims covering an area of 1,594.68 acres located to the southeast of Tombstone.
O’Heeron has been a habitual buyer, purchasing the minerals and metal stock 10 uninterrupted times, outlying $438,589.
According to Transparency Market Research Inc,. “The Global Rare Earth Metals Market was valued at US$ 10.6 Bn in 2021. It is projected to expand at a CAGR of 7.4% from 2022 to 2031.
Surge in demand for minerals in clean energy technologies in several countries to attain energy security is anticipated to accelerate market development. Numerous countries, especially the U.S. and China, are stepping up efforts to strengthen domestic supply chain of rare earth magnets.
Additionally, considerable initiatives by governments of these countries to use advanced mining, processing, and refining methods to tap into reserves of rare earth elements (REE) is likely to broaden rare earth metals market outlook.” (2)
Normally we delve into a company’s consensus earnings and revenue projections according to Wall Street analysts, but LBSR doesn’t have any coverage. Instead, we view the penny stock based on its 52-week price pattern. Shares have been as low as $0.039 and as high as $0.286 in the last year. (3) Liberty Star trades at $0.0425 as we type.
The stock is volatile and it’s not uncommon to experience an intraday $0.02 to $0.04 range. While that doesn’t sound like a lot, it can mean a 50 percent or more loss or gain during a single day of trading. There is some liquidity as the average daily volume is more than 100,000 shares.
OVERALL: Liberty Star Uranium & Metals Corp. (LBSR) is straight up speculation and only appropriate for short-term, high risk, high reward investors. Longer-term, the micro-cap could offer tremendous upside should they uncover a wealth of rare earth minerals or precious metals but is also capable of going belly-up if the cupboard is bare, which means don’t invest more than you can afford to lose because you could lose it all.
1 – https://www.secform4.com/insider-trading/1569334.htm
2 – https://www.globenewswire.com/en/news-release/2023/06/06/2683268/0/en/Global-Rare-Earth-Metals-Market-to-Register-a-Staggering-7-4-CAGR-from-2022-to-2031-Reaching-US-21-7-Billion-TMR-Report.html
3 – https://finance.yahoo.com/quote/LBSR?p=LBSR