Topic: How To Invest

Pat: What’s your view on rare-earth stock Stans Energy? Thanks.

Article Excerpt

Stans Energy Corp., $1.17, symbol HRE on Toronto (Shares outstanding: 120.9 million; Market cap: $157.0 million; www.stansenergy.com), owns 100% of Kutessay II, a former Soviet rare-earth-element mine in Kyrgyzstan. The site’s mining infrastructure is still in place, and Stans has a license to reopen the mine. The company is now conducting a feasibility study to see if it is worth the investment. Rare earths 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. In May 2011, Stans bought the Kashka rare-earth processing plant. This formerly top-secret Soviet-era plant used to refine rare earths from Kutessay II. The company believes the plant gives it an edge in the complex process of refining rare earths. Rare earth stocks have shot up over the last year. That’s mainly because China, which accounts for about 95%…