Opportunity In These 3 Stocks On The Move

 |  Includes: MCPIQ, P, SIRI
by: Stephen Faulkner

The following three stocks are currently on the move. Each have posted gains on Friday and look to be continuing the trend into the coming week. These are great buying opportunities to entertain immediately for short term gains.

Molycorp (MCP)

I have followed this stock for several months, ever since seeking to buy a bunch of little rare earth magnets for a project back around Fall of 2011. In finding these magnets expensive, I decided to investigate why, which led me to issues in China, and finally to Molycorp.

Molycorp is a leading supplier of rare earth metals, and is expanding operations at a rapid pace to face the increased demand for their product. From their website :

Molycorp, Inc. is the only rare earth oxide (REO) producer in the Western hemisphere. We own and operate the world's largest, most fully developed rare earth mine and oxide manufacturing facility outside of China, located in Mountain Pass, California.

We have been producing rare earth products for more than 59 years. Our team of more than 940 scientists, engineers, chemists, technologists, and highly skilled workers is one of the foremost assemblages of rare earth manufacturing expertise in the world.

They recently announced a $1.3 billion deal to acquire leading rare earth processor Neo Material Technologies which has sent the stock catapulting higher. With the increasing focus on "green" energy and technologies, as well as increased demand for products which use rare earths in their make-up, Molycorp stands to reap the benefits of increased demand for its rare earth metals.

Catch this stock on the upswing, and lock in some impressive gains moving forward, or buy and hold long term. Molycorp is a winner now, and into the future.

Pandora Media (NYSE:P)

While I think this stock is poison for the long term, I understand how stocks can and will rebound after a severe drop. Pandora is one of these stocks on the rebound and offers an excellent "in and out" trading opportunity.

The recent 25% drop for Pandora was due to an announced revenue and earnings miss, as well as decreased and disappointing guidance moving forward. I believe the drop was warranted, but this is a volatile stock which has been in a bearish triangle pattern and needs some time to complete the trend. Because of this, and the rapid nature of the decrease, Pandora is currently going through a correction.

Up 7% on Friday to $11.50, Pandora could move up to $12.50 before leveling off and dropping yet again. This is a speculative play, but my suggestion is a buy on Monday if the stock opens at or around $11.50 and seems to be increasing through the early morning on respectable volume. Seek to exit your position from $12.50 to $13 for some respectable gains. Those who are bullish on the recovery may play this with $11 calls in the short term, and I feel this might be a great two day play for Monday and Tuesday. Buy in, let it pop a little and get out using March 17th $11 calls.


I cover this stock quite a bit, and I make no secret of the fact that the vast majority of my portfolio is wrapped up in SiriusXM stock, as well as June $2 call options.

SiriusXM is in and has been in an uptrend since way back to October of 2011 when it bottomed out for what I chalk up to "no good reason." If you bought back then around the lows, you are currently up about 80%, so good for you. The question is, though, does this stock show opportunity moving forward for new players? I would say the answer is a resounding "yes."

SiriusXM is beginning what will be a blowout year for the company and subsequently the stock. Most recently Mel Karmazin made nice with Jim Cramer, one of SiriusXM's biggest detractors for years. This should be a small catalyst building off of a host of other catalysts such as a modest price increase driving cash to the bottom line, exceptional auto sales driving subscribers to the ranks, and increasing penetration into the used auto markets to tap into previously ignored potential.

SiriusXM is currently fighting with $2.35 resistance, and Friday's close of $2.35 could be a signal that significant upside is to come. Beyond $2.37 there is a lot of untested water, and the share price could launch skywards once resistance is broken through.

This is a great buy at current levels for both short term and long term. Short term, play the pop beyond resistance. For long term, I don't see many chances to lose, and buy and hold investors should be handsomely rewarded from current levels.


All three of these stocks are in different stages, and all three are currently offering opportunities to make significant gains. Do your research, form a plan, and execute it. You'll be glad you did.

Disclosure: I am long SIRI.

Additional disclosure: I am long SIRI June $2 calls.