MENU

Is this the end for Lynas Corporation Limited?

Shares of rare earths miner Lynas Corporation Limited (ASX: LYC) have continued their rapid descent today with the stock trading 5.3% lower at just 5.4 cents. At their current price, the shares have fallen a stunning 85.4% over the last 12 months, while they have crumbled a massive 98% since peaking at $2.70 in mid-2011.

While some investors are more than willing to accept a high level of risk in the hope of maximising their returns, Lynas still looks like a company to avoid at all costs.

The company’s financial health has been rapidly declining, which has already resulted in two capital raisings over the last 12 months. With just $16.9 million left in the bank as at 30 September, I wouldn’t be surprised if another capital raising were to occur which would further dilute shareholder equity.

Lynas Corporation remains an extremely risky bet and investors should do themselves a favour and steer clear. Luckily, The Motley Fool has just issued a far greater alternative for you to consider, and they've even named it their BEST stock to buy for 2015!

Hot off the presses! The Motley Fool's top stock for 2015 is a sexy ASX tech company with a stunning track record and plenty of room to run. Discover our analysts' hands-down favourite bet for 2015 in this brand-new FREE report. Simply click here to grab your copy.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.