AREC - American Resources Is Misunderstood And Has An Enormous Upside
2024-02-14 11:28:59 ET
Summary
- American Resources Corporation is a coal company with multiple mining complexes, primarily focused on metallurgical coal.
- AREC has acquired mining rights to several large areas, with potential deals that could significantly increase shareholder value.
- AREC also has a promising processing business that could disrupt China's dominance in rare earth metals and strategically important minerals markets.
AREC is a classic case of an "asymmetric" investment opportunity with a limited downside and an enormous upside. Although it is viewed as a "coal company", most of the potential value lies in its extremely attractive rare earth and critical metals processing technology. A buyer at the current price has the potential to reap enormous profits, although it must be admitted that the investment is speculative. The downside an investor faces seems to be limited by the apparent value of the coal holdings, which is considerably higher than the stock price. The investment community seems to be confused about this company, and there are several moving parts which may have generated this confusion....
American Resources Is Misunderstood And Has An Enormous Upside