Rare Earth Metals Investment - China Shen Zhou Mining & Resources

The speculation of the rare earth metals stocks are driving up share prices of companies such as Molycorp and Rare Element Resources.  The recent announcement that China is cutting its rare earth metal export by more than 10% sparked another rally of these rare earth metal stocks.  Concerns of possible bubble pop have then took over and drove down the price.  So this could be the time to look at these high speculative stocks again.  


Another possible rare earth metal player that investors identified is China Shen Zhou Mining & Resources Inc (AMEX:SHZ).  Three months ago back in October of 2010, SHZ used to be a penny stock traded around $1 per share.  Shares surged to $4 per share in late October for no apparent reason and stay in the $2 to $4 range for the next two months until recently as the company has been identified as a possible rare earth metal player and send the stock price to as high as $10.84 earlier this week.  The stock is currently traded at $9.23 with P/E ratio of 41 and market cap of 258 million.  The technical chart shows strong bullish trend as all 20 day, 50 day and 200 day moving averages are going up while KD line stay high around 80.  The stock is still way above the 20 day moving average of $6 so it would be safer to wait for the stock to correct back to at least the 20 day moving average line.