Topic: How To Invest

Pat: Can I have your recommendation on Neo Materials, symbol NEM. Thank you.

Article Excerpt

Neo Material Technologies Inc., $5.50, symbol NEM on Toronto (Shares outstanding: 120.1 million; Market cap: $660.6 million), buys rare earth elements and processes them into neodymium-iron-boron magnetic powders and zirconium-based engineered materials. Toronto-based Neo Material makes its products at plants in China, Thailand, Germany and North America. Rare earth elements are used in a variety of modern devices and applications, including catalytic converters and petroleum refining; magnets in small and large motors; glass additives and glass polishing compounds; rechargeable batteries; television and computer screens; lighting; X-ray machines; and lasers. Neo’s Magnequench division accounts for 55% of its sales. This division makes magnetic powder, which is used to make small, strong, lightweight magnets that are used in electronics, particularly small motors that run computer hard drives, copiers and CD and DVD players. The company’s Performance Materials division supplies the remaining 45% of its sales. This division makes oxides and salts out of rare earth elements. These materials are then used in catalytic…