And this morning MP, the biggest US player in the space and the stock we said is most likely to benefit from the REE revolution, is up 50%.
*MP: DOD IS POSITIONED TO BECOME COMPANY’S LARGEST HOLDER
*MP MATERIALS ENTERS PUBLIC-PRIVATE PARTNERSHIP WITH US DOD
*MP TO CONSTRUCT 2ND DOMESTIC MAGNET MANUFACTURING FACILITY
*MP: DOD TO BUY $400M OF A NEWLY-CREATED SERIES OF PFD STOCK
MP Materials shares are up 48% premarket after the company struck a multi-billion dollar public-private deal with the US Department of Defense to build a new magnet plant and expand rare earth capabilities, backed by $400m in equity and a $1b loan commitment.
MP received $1b commitment letters for its second domestic magnet manufacturing facility (10X Facility) from JPMorgan and Goldman Sachs
DoD to buy $400m of preferred stock, convertible at $30.03/share
$150m DoD loan expected within 30 days for Mountain Pass expansion
DoD establishes price floor of $110/kg for NdPr product under 10-year deal
DoD to back 100% of 10X Facility magnet sales for 10 years
New 10X Facility to boost US magnet output to 10,000 metric tons/year
Commissioning for the new facility targeted for 2028
Deal includes warrants; DoD could become MP’s largest shareholder with 15% stake
JP Morgan acted as exclusive financial adviser to MP Materials
Rare-earth magnet player USA Rare Earth jumps 17%; TMC, which aims to gather critical minerals like cobalt and nickel at the bottom of the ocean, rises 13%
Their trading desk did (which is actually the best on Wall Street and know what they are talking about, not their woefully bad sellside research team), and we published it here. Their top idea was Power Up America and it rose 50% since we first mentioned it last April and made it our top trade of 2024.
Then again, cynics - like in this case - said that trade too would collapse.
That's not what it says at all. It assumes an economy that is growing at a slower pace than the final Biden years when $1 trillion of debt was being added every 100 days, and which is why the deficit exploded in 2023 and 2024.
Right now we are in "bad news is bad news" mode: last month's retail sales beat sent stocks soaring, so expect more of the same, especially since the Fed will cut at least 25bps either way (inflation is no longer a gating factor, at least for now). The biggest risk for markets right now is that the Fed is cutting into a recession, which as we noted before, is the one time stocks dump into an easing cycle (see here and here).
Norinchukin Bank, a 95-year-old bank that holds around $600 billion in deposits from Japan’s agricultural and fishing collectives, has amassed a significant share of the estimated $700 billion global market for collateralized loan obligations, or CLOs—complex investment vehicles that buy more than half of U.S. loans to junk-rated companies.
Certainly not as cheap as when we first told you to buy it at $230 in 2015. That said we can't wait for the endless snarky commentary when it is over $1 million in a few years.
"guaranteeing that any pretense of a 2% inflation target is dead and buried, something which wasn't lost on gold and silver, both of which have soared ever since Canada cut rates first yesterday..."
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And this morning MP, the biggest US player in the space and the stock we said is most likely to benefit from the REE revolution, is up 50%.
MP Materials shares are up 48% premarket after the company struck a multi-billion dollar public-private deal with the US Department of Defense to build a new magnet plant and expand rare earth capabilities, backed by $400m in equity and a $1b loan commitment.
MP received $1b commitment letters for its second domestic magnet manufacturing facility (10X Facility) from JPMorgan and Goldman Sachs
DoD to buy $400m of preferred stock, convertible at $30.03/share
$150m DoD loan expected within 30 days for Mountain Pass expansion
DoD establishes price floor of $110/kg for NdPr product under 10-year deal
DoD to back 100% of 10X Facility magnet sales for 10 years
New 10X Facility to boost US magnet output to 10,000 metric tons/year
Commissioning for the new facility targeted for 2028
Deal includes warrants; DoD could become MP’s largest shareholder with 15% stake
JP Morgan acted as exclusive financial adviser to MP Materials
Rare-earth magnet player USA Rare Earth jumps 17%; TMC, which aims to gather critical minerals like cobalt and nickel at the bottom of the ocean, rises 13%
More here: MP Materials Announces Transformational Public-Private Partnership with the Department of Defense to Accelerate U.S. Rare Earth Magnet Independence
Their trading desk did (which is actually the best on Wall Street and know what they are talking about, not their woefully bad sellside research team), and we published it here. Their top idea was Power Up America and it rose 50% since we first mentioned it last April and made it our top trade of 2024.
Then again, cynics - like in this case - said that trade too would collapse.
That's not what it says at all. It assumes an economy that is growing at a slower pace than the final Biden years when $1 trillion of debt was being added every 100 days, and which is why the deficit exploded in 2023 and 2024.
Indeed, typo. Fixed
We are working on it, should be rolled out soon
Right now we are in "bad news is bad news" mode: last month's retail sales beat sent stocks soaring, so expect more of the same, especially since the Fed will cut at least 25bps either way (inflation is no longer a gating factor, at least for now). The biggest risk for markets right now is that the Fed is cutting into a recession, which as we noted before, is the one time stocks dump into an easing cycle (see here and here).
Actually, the idiots are spot on quite frequently: "As Stocks Soared Last Week, Hedge Funds Resumed Selling: Goldman Prime"
It's worse: most of it is money from Japanese farmer pensions (the bank is the country's largest agricultural lender).
See: "The Bank for Japanese Farmers That Fuels the Global Lending Market" from 2019
On Bloomberg, use the ticker GSXUMIDC Index for middle-income. The High and Low indexes are GSXULOCN and GSXUHICN.
Certainly not as cheap as when we first told you to buy it at $230 in 2015. That said we can't wait for the endless snarky commentary when it is over $1 million in a few years.
Maybe read the article you are commenting on?
"guaranteeing that any pretense of a 2% inflation target is dead and buried, something which wasn't lost on gold and silver, both of which have soared ever since Canada cut rates first yesterday..."
Bingo. And the Fed wants to cut too, it just needs an economic datapoint "excuse" to do so. A big CPI miss next week would be just that.
Actually they did, just needed a reminder which we gave on April 22 which also marked the recent bottom: Read "Stocks Surge In Massive Squeeze As Traders Frontrun End of Buyback Blackout Period" from April 22, i.e., the coming buyback spree is something our subscribers certainly knew about.
Well... yeah, since Sept 2015 when it was $225 and when we told readers to buy it and explained why.
It's up 285x since then in less than a decade, making it the best performing asset class in the history of the world.
So yeah. Lol.
No, just dealer gamma turned negative below 5100. Very difficult to sustain a rally with gamma negative.
From April 29: Dealers Flip Short Gamma Just In Time For Wednesday's FOMC
We had a debate on the fate of the US dollar two months ago. You can see it here. You can watch all of our historical debates at this page.
All of the above is just to avoid a crash before November. After that, run
If you are a major bank you have no choice but to play along with the charade.
it is
And four days ago it was at an all time high of $73,000.
If you can't stand the volatility, maybe it's not for you though.