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Molycorp (MCP -2.2%) moves lower again after Morgan Stanley downgrades shares to Equal Weight...
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Tuesday, November 13, 2012, 10:21 AM ETMolycorp (MCP -2.2%) moves lower again after Morgan Stanley downgrades shares to Equal Weight following Friday's disclosure of a formal order of SEC investigation. While it's possible the worst case scenario already is priced in, the firm says uncertainty surrounding the issue and the possibility that it will take some time to resolve leads to the downgrade.
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This news story has 6 comments:
are disenchanted with the REEs, especially the HREE producers.
All eyes should be on China. I am adding both MCP and LYSCF.
We will be exporting to China soon.
PS : Someone didn't like my previous Comments apparently ;-) ?
Nothing was said about the SEC investigation and hence, although the shares were up initially given the decent numbers and outlook, the stock was dumped massively. MCP made the biggest error by not being open and transparent to its shareholders and it will therefore take a long time before investors will once again trust the current management team. The lack of communication has given more ammunition to the likes of Jim Cramer who never substantiates why he is not interested in the stock or the sector and the hedge fund community who was massively short the stock, albeit from very high levels when the company was still in a start up phase. If the SEC finds nothing seriously its time to move back to fundamentals but with a steep discount given serious flaws in basic investor relation policies.