Seeking Alpha

Molycorp drop halted only briefly by positive analyst mention

  • Molycorp (MCP -8.5%) extends its descent into all-time lows, a day after reports that Apollo Global Management is adding to its MCP bond holdings, which would position the investment firm to take control of MCP in the event the company sought to restructure its $1.5B in debt.
  • Shares enjoyed a momentary bump after D.A. Davidson came out positive on the company, saying after meeting with management it remains optimistic that MCP's production rates are improving; it has a Buy rating on the stock with a $7 price target.
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Comments (21)
  • jzut
    , contributor
    Comments (56) | Send Message
     
    LOL!!!!
    10 Jul, 12:22 PM Reply Like
  • JohnNewman13
    , contributor
    Comments (52) | Send Message
     
    This MCP should be investigated by the SEC and IRS.
    Global Management should be investigated for recommending this piece of crap
    stock that fell from $77.00 DOWN to it's current price.
    And put a $7.00 price target, based on what BS????????????
    10 Jul, 12:24 PM Reply Like
  • King Rat
    , contributor
    Comments (724) | Send Message
     
    I could agree with you if not for the fact that insiders have been buying all the way down.
    http://bit.ly/TVdkXa;submit=+GO+

     

    For all the blame people are putting on management, they cannot deny the fact that management is putting their money where their mouth is.
    10 Jul, 12:42 PM Reply Like
  • vireoman
    , contributor
    Comments (1006) | Send Message
     
    They're apparently as good at investing as they are at managing a company.
    10 Jul, 02:11 PM Reply Like
  • iBot Vested
    , contributor
    Comments (74) | Send Message
     
    I think if you understood what it took to bring a plant this size up to operation, you would understand why cash was being burnt. Bottleneck's are a pain when you have them in multiply areas. Plus, you had some engineering issues which forced a lawsuit to help recoup lost funds.
    10 Jul, 02:21 PM Reply Like
  • MustangMajor
    , contributor
    Comments (102) | Send Message
     
    Thanks, I really needed a good laugh.
    I lost $17K and finally bailed at 2.75.
    11 Jul, 12:33 AM Reply Like
  • AndrewBaker
    , contributor
    Comments (2390) | Send Message
     
    There are lots of questions and few answers (that are satisfactory), but I am long MCP and whilst recent events have moved my position into a loss making one, I'm holding with the intention of buying more when a new uptrend starts. Too many people have not allowed for the fact that this company is an integrated rare earth metal supplier, and the economic recovery will do wonders for their figures.
    10 Jul, 12:32 PM Reply Like
  • iBot Vested
    , contributor
    Comments (74) | Send Message
     
    I'm long.
    10 Jul, 12:50 PM Reply Like
  • eleppin
    , contributor
    Comments (33) | Send Message
     
    buying cheap calls
    10 Jul, 01:01 PM Reply Like
  • formula1600
    , contributor
    Comments (20) | Send Message
     
    Largest buy volume day since Jan 2nd.
    10 Jul, 04:07 PM Reply Like
  • pollyserial
    , contributor
    Comments (1093) | Send Message
     
    Chuckling at this headline, closed +4%. Bought a little @ 1.70. Legging in, because the whole Apollo Group thing is a bit concerning and I kind of expect lower prices as earnings approach.
    10 Jul, 04:09 PM Reply Like
  • redfox2
    , contributor
    Comments (20) | Send Message
     
    Insiders were buying and that's why I stayed in. That, and I don't think the government would allow MCP to default after they began operations because of China issues.
    10 Jul, 04:28 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1158) | Send Message
     
    closed up today...
    10 Jul, 04:30 PM Reply Like
  • John Kastanes
    , contributor
    Comments (602) | Send Message
     
    As long as insiders are buying I will hold on to my thousand shares.
    10 Jul, 05:23 PM Reply Like
  • bones33
    , contributor
    Comments (286) | Send Message
     
    All Longs should put GTC (good til cancel) orders on their shares so they can't be borrowed by the shorts to short further.The longs will get a good laugh when the good news starts rolling out and the shorts start to cover.will be one heck of a short squeeze!
    10 Jul, 06:01 PM Reply Like
  • nevadach
    , contributor
    Comments (2) | Send Message
     
    Has anyone else observed that MCP ITM LEAPS call Exp. 2016-01 strike $1.50 contracts were selling on 7/10/14 for $70? That is not much risk to control 100 shares of MCP ... whose all-time high was $74.22 on 4/15/2011! MCP has the largest FULLY OPERATIONAL rare earth mine and refinery in the U.S. In addition it has one of the largest reserves of Thorium on Earth. Thorium will be used internationally to fuel new Clean & Safe nuclear power reactors that cannot melt down. It operates 10 times more efficiently than uranium fuel. At $250K cost each Thorium reactors are thirty-thousand times less expensive to construct than uranium reactors. (China and India are already building them.) The cost of electricity generated by Thorium plants will be hundreds of millions times less expensive than for other forms of energy … including solar, wind, coal, & natural gas. For Thorium generated electricity the customer will pay only an infrastructure fee … regardless of how much power is used. It will put the other power sources out of business! Furthermore Thorium plants release nothing to the atmosphere and can be built in small spaces. Thorium plants also avoid tremendous environmental impacts (and gigantic acreage required in wildlife environments) for diffuse energy sources such as solar, wind, and hydro. The Thorium reactor design was built and tested during President Nixon's administration. It was shelved because our government wanted uranium plants able to produce Plutonium for nuclear weapons to meet the political needs of detente (also known as "Mutually Assured Destruction") during our Cold War with the now defunct USSR. MCP is a U.S. strategic asset. If any company ever DESERVED a government bailout it would be MCP.
    10 Jul, 06:10 PM Reply Like
  • monumentalgains
    , contributor
    Comments (226) | Send Message
     
    Thanks for the info nevadach! Where do you learn this stuff, what sources if you don't mind sharing?
    11 Jul, 07:54 AM Reply Like
  • K Street
    , contributor
    Comments (9) | Send Message
     
    Wish I only had a thousand, John -- but, like you, I'm hanging around.

     

    The real cause of my second (and third) thoughts is the contents of their mine. Rare earths are not ALL rare -- and MCP's are more common than marketable. True rare earths of value are the "heavies" and MCP has darned little of those. Conclusion: I hope the US and Europe prefer working with MCP than China to fulfill their "light" rare earth needs. Meanwhile, I'll look to Canadian miners such as Avalon (AVL) for the scarcer and more desirable HREEs.
    10 Jul, 06:10 PM Reply Like
  • John Kastanes
    , contributor
    Comments (602) | Send Message
     
    This was my first venture in mining stocks and it will be the last. MCP is vertically integrated, hopefully they will be able to generate more $ than a pure mining company.
    10 Jul, 06:27 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1158) | Send Message
     
    Now that S.E. has gone long we should see 15 articles a week stating whey it is worth 30 something a share ... ha ha ha ;) :p
    11 Jul, 01:06 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    China killed (MCP) once. Seems like they'll kill it again.
    12 Jul, 11:11 PM Reply Like
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