Since the Colorado-based Molycorp (MCP) news release of Feb. 5 of a dividend payout to holders of convertible preferred, MCP has convincingly extend its rally above $5 to close at $5.33 per share on Thursday from the Feb. 5 close of $4.71, or a 13.1% rise in price in only six trading days.
From the looks of the recent price action against a backdrop of approximately half of MCP's float held short, it's not a stretch to conclude a considerable short squeeze is underway, catalyzed further by some fresh buyers above $5 per share.
But will that immense and stubborn short position eventually provide the gunpowder for an extended leg up in the price of MCP over the weeks...
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