Extending the 17% rise of last week, shares of The Metals Company (TMC 7.21%) continued climbing higher this week. After a positive article about the deep-sea mining company surfaced last weekend, an analyst's positive take on the company inspired the bulls to continue their buying spree.
According to data provided by S&P Global Market Intelligence, shares of The Metals Company have climbed 20.6% from the end of trading last week through the close of Thursday's session.
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A double dip of bullish news
Investors began the week itching to buy The Metals Company stock after reading about the company in a Wall Street Journal article over the weekend. Discussing the lucrative opportunity that deep-sea mining offers for procuring battery minerals like cobalt and copper, the article makes prominent mention of The Metals Company, which filed for deep-sea mining permits in April -- shortly after President Trump's executive order to fortify the nation's supply of critical minerals.
The article cites research that pegs the market value of deep-sea minerals at $20 trillion.
Before the tide of enthusiasm from the weekend ebbed, a new catalyst for the stock's rise emerged on Tuesday, when investors learned that financial institution H.C. Wainwright had initiated coverage on The Metals Company, rating it a buy and assigning a $5.50 price target.
Is powering your holdings with The Metals Company still a good idea?
Given the White House support for deep-sea mining, it's unsurprising that The Metals Company stock is rising. But the company is far from even beginning commercial operations, and there's no certainty that they will be profitable if it does. Only those with a high tolerance for risk should consider positions now.
