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Shares of Molycorp (MCP -1.5%) retreat after JPMorgan issues cautionary comments on the deal to...

Shares of Molycorp (MCP -1.5%) retreat after JPMorgan issues cautionary comments on the deal to take on an investment from Molymet. Analyst Michael Gambardella questions the timing of the cash infusion without any obvious use for it by the rare earth miner.
Comments (6)
  • I question JP Morgan metal analysts diverging views on the target prices. Lynas 2.15(ASD) 3.68 billion(ASD) vs.Molycorp (39) $3.90 billion diluted. Their YE 2013 numbers indicate that MCP should be 2 times bigger by both MP Morgan forecasts. If I put both reports side by side and did not know what the companies were, I would think I was looking at reports on two different industries.
    1 Feb 2012, 02:35 PM Reply Like
  • this JP analyst doesn't have a clue! (yup, Gambardella, I said you are wrong) - this is the same one [analyst] that talked down about MCP's sales in late december when MCP then annouced 78% pre sales one week later. - let's see what MCP does in the next couple weeks and see how last qrtr reported sales are...then see if Gambardella still has valuable input.
    1 Feb 2012, 02:54 PM Reply Like
  • I retract my previous statement, - maybe Gambardella knows more than all of us.
    12 Feb 2012, 03:36 PM Reply Like
  • I reallly cannot understand when MCP's facilities are outdated and they are planning to put up new facilities ,why would they not require additional funding..?Further more MCP is also planning to increase there output by double from endof this year and next.So what i fail to understand is how did the JPM analyst come out with such a comment.The capital requirement is also huge and what is wrong if MCP is planning much in advance
    2 Feb 2012, 11:27 AM Reply Like
  • I am a common sense investor
    MY QUESTION TO ANYONE IS WHY WOULD MOLYMET INVEST 390 MILLION INTO A FRAUDULENT COMPANY?DON'T THEY HAVE THEIR ACCOUNTANT'S RESEARCH BEFORE THEY BUY?
    9 Feb 2012, 02:19 PM Reply Like
  • One theory that I think is possible is that Molymet approached MCP with the notion of buying or merging with MCP. The resulting transaction may be classified as a Bear Hug?
    10 Feb 2012, 08:34 AM Reply Like
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