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Molycorp (MCP) Q3 misses across the board as earnings growth fell slightly below Street...

Molycorp (MCP) Q3 misses across the board as earnings growth fell slightly below Street expectations. Net sales surged 39% Y/Y to a record level on strong volume, but the company cuts its FY11 production estimates due to recent concerns over pricing volatility. Shares -8.7% AH.
Comments (2)
  • THE BO MAN
    , contributor
    Comments (4) | Send Message
     
    WHERE'S "THE STRATEGIST'S" STAND ON THIS NEWS?HAVEN'T HEARD FROM HIM LATELY.HE WAS PAINTING A ROSY PICTURE NOT TOO LONG AGO. PERHAPS THIS WAS BEFORE KNOWLEDGE OFTHOSE PESKY INSIDER SALES????
    10 Nov 2011, 08:28 PM Reply Like
  • Mjapple
    , contributor
    Comments (25) | Send Message
     
    I have no idea where you got this: "..the company cut its FY11 production estimates due to recent concerns over pricing volatility." I listened to the conference call and read the report, and cannot find this assertion anywhere. You're implying that the company is intentionally scaling back due to pricing concerns -- that somehow the market for its products is weaking. The opposite is true: The company can't make enough of the product to meet demand, it selling everything it makes and average REO pricing it received nearly doubled last quarter. The company missed revenue estimates because of lower production. Mark Smith addressed the lower Q3 production by saying they needed some "equipment downtime" at Mountain Pass, whatever that means, but then the report says: "We expect the midpoint of our production range for the fourth quarter of 2011 to be approximately 25% higher than the actual production attained during the third quarter of 2011 due to increased production from our Mountain Pass facility."

     

    I think you need to clarify the above assertion because I believe it is incorrect and misleading.
    10 Nov 2011, 11:13 PM Reply Like
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