For his closing “Government Determination” section of Mad Cash Thursday night time, Jim Cramer checked in with James Litinsky, founder, chairman and CEO of MP Supplies (MP) , the uncommon earth mining firm that is important for the manufacturing of electrical autos.
Litinsky mentioned the important thing to electrifying America is the upstream provide chain. There merely is not sufficient supplies for everybody to compete, he defined. China controls 90% of the magnet market, making it a single level of failure for the remainder of the world, he added.
That is why MP Supplies introduced it’s constructing a magnet facility within the U.S. in partnership with Common Motors (GM) . Litinsky mentioned the deal is a win for each MP Supplies, which is starting to maneuver its operations downstream into magnetics, and for GM, which wants dependable provides of magnets for its EV motors.
When requested whether or not it was time to lift money for enlargement, Litinsky famous that MP Supplies has $1.2 billion in money on its books and is in a fantastic place to fund its enlargement plans.
Let’s try the charts. In our July 8 review of MP we beneficial “MP might pull again to $30 or perhaps a little bit decrease. Aggressive merchants might use a pullback to $30 to probe the lengthy aspect of MP.”
On this up to date each day bar chart of MP, under, we will see that subscribers of Actual Cash received a possibility to purchase MP round $30 in July, August and in October. Costs have since rallied to round $50 however look robust and able to additional beneficial properties. MP is buying and selling above the rising 50-day shifting common line. And the rising 200-day line. We will see a bullish golden cross purchase sign in early November when the 50-day line crossed above the 200-day line.
The On-Stability-Quantity (OBV) line has been slowly rising from Could and tells us that consumers of MP are being extra aggressive than sellers. The Transferring Common Convergence Divergence (MACD) oscillator is above the zero line and is prepared for a brand new bullish crossover and purchase sign.
On this weekly Japanese candlestick chart of MP, under, we see some constructive clues. The big white (bullish) candle in early November is setting the stage for additional beneficial properties. Costs are above the 40-week shifting common line.
The weekly OBV line is regular and the MACD oscillator is bullish. There are two higher shadows above $45 however the subsequent push up in worth ought to put the bulls in management.
On this each day Level and Determine chart of MP, under, we will see a possible upside worth goal within the $72 space.
On this weekly Level and Determine chart of MP, under, we see an $80 worth goal.
Backside line technique: We have now been testing MP since April and have beneficial different uncommon earth performs prior to now yr or so. Proceed to carry MP longs. Threat to $37 now. Our worth targets are $72 after which the $80 space.
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