Jim Cramer on USA Rare Earth: "You Have to Stay Away for Now"

USA Rare Earth, Inc. (NASDAQ:USAR) is one of the stocks Jim Cramer spoke about recently. A caller asked if the stock is a buy or “just an ill-fated trade”. Here’s what Mad Money’s host had to say in response:

“I’m going to say that you have to stay away for now. I mean, one of the things that you needed was that kind of mojo that came from the shortage. If we work out a longer-term deal with rare earth, it’s not, it’s not going to rebound very well for USA Rare Earth, which is losing a fortune.”

USA Rare Earth, Inc. (NASDAQ:USAR) focuses on mining, processing, and supplying rare earth elements and critical minerals such as neodymium, lithium, and gallium. A caller asked about the stock during the lightning round of the October 6 episode, and Cramer responded:

“Okay, now we did a piece last week on rare earth companies, and we said that they’re all speculative, but we recognize that the president, at any given moment, could take a stake. I am going to say that this fits that pattern, and we are not going to fight you to take it. Now, it’s not like I’m just saying you can buy any one of these. I am saying that there’s White House talk, Trump stake, that’s what we’re concerned about. You can play that. Remember, that’s what you’re doing. You’re not playing the earnings… You know there aren’t any.”

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Disclosure: None. This article is originally published at Insider Monkey.