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Updates on MCP, NFLX


Molycorp is getting crushed this morning after an analyst downgrade from overweight to neutral a price target cut from $105 to $66. The stock was down 6% in pre-market, opened down 8%, and is now down 10%. This downgrade appears to be scaring a lot of folks, and the fact that the CEO is going to Congress to testify about the supply of rare earth minerals. I got in and out of MCP last week, and although I like it at $48, I'm going to see if it trades a little lower before thinking about getting in again. 

Netflix continues to get crushed. The company announced that it will spin off its DVD only business, leaving the core company to focus on the streaming only business. Apparently, the price hike has really angered customers and this spinoff is making people even more furious. The CEO issued a weak apology yesterday as shares are now down over 30% in the past week. At one point yesterday, the stock had rebounded about 9% to $168, but then tumbled to close under $144. It's now down another 4%, trading below $138. I'm going to stay away for now. There is just too much selling pressure right now.

Stocks: IQ, NFLX