TMC The Metals Company saw a 20.3% rally after a Friday plunge. President Trump’s trade war threats eased, but rare earths scuffle caused other miners to soar. Speculative stocks, like TMC, benefitted too. The market reacted positively to Trump’s weekend post hinting at de-escalation, highlighting the importance of critical materials.
President Trump’s rare earths threat to China led to stock sell-offs, except for U.S.-based rare earths companies. TMC doesn’t mine rare earths yet; it’s awaiting permits. Trump’s weekend post suggested de-escalation, boosting speculative and high-beta stocks like TMC.
TMC’s rally may be due to the rising importance of critical materials amid trade wars. Despite TMC’s lack of rare earths mining, its focus on other critical metals could gain attention. The company’s valuation is uncertain, given its speculative nature and lack of current revenue.
Deep sea mining presents a significant opportunity for TMC, with a potential $20 trillion global market for undersea metals. TMC remains a risky, lottery ticket investment due to its unproven revenue model and need for upfront capital investment. Investors should approach with caution.
TMC The Metals Company’s recent rally may be influenced by the broader market sentiment and speculation around critical materials. As a speculative investment without current revenue, TMC’s future remains uncertain. Investors should carefully consider the risks and potential rewards before investing in the company.
Read more at Yahoo Finance: Why TMC The Metals Company Rocketed Higher Today