Is USA Rare Earth Under $20 a Bargain or a Trap?

Shares of USA Rare Earth (NASDAQ: USAR) currently trade right around $18. That's more than 50% below its 52-week high. Despite that sell-off, I don't think shares of the rare-earth miner are a bargain. Here's why. USA Rare Earth has grand ambitions. The company aims to become a global leader in supplying critical minerals and advanced materials, and in producing rare-earth elements, oxides, metals, and magnets. It's building a fully integrated mine-to-magnet business that already includes a deposit in Texas and manufacturing operations in Oklahoma. The company recently took a major step toward becoming a global rare-earth leader by agreeing to acquire Serra Verde Group for $2.8 billion. It's also investing in expanding its processing capabilities through its recent investment in Carester. Additionally, it plans to build a new rare-earth metal and magnet manufacturing operation in South Carolina. Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool