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J.P. Morgan's Michael Gambardella cuts his price target on Molycorp (MCP -4.6%) to $19.50/share...

J.P. Morgan's Michael Gambardella cuts his price target on Molycorp (MCP -4.6%) to $19.50/share from $23, questioning whether MCP overpaid for its $1.3B acquisition of Neo Material. The analyst sees strategic value to establishing a big base in China, but he thinks the takeover may turn out to be too expensive if the supply chain becomes oversupplied and prices keep falling.
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Comments (5)
  • OldenAtwoody
    , contributor
    Comments (22) | Send Message
     
    This is the same retard that cut the rating on September 2011, causing the massive loss of shareholder wealth. I cannot imagine why he has such a hard-on for MCP.
    9 Jul 2012, 11:27 AM Reply Like
  • nesti
    , contributor
    Comments (39) | Send Message
     
    When China has stopped export of and aims to process within its territory such sand is rare, the market they should be searched more.
    So their price will rise and the stemming and the value of the shares of companies that produce this commodity and operating outside China as MCP etc.
    So we increase the value of the gold price of shares of companies that produce it as it is possible that low?
    Apparently the game is not good. Although the article does not analyze the phenomenon? Please to correct your position.
    9 Jul 2012, 12:02 PM Reply Like
  • joe kelly
    , contributor
    Comments (1806) | Send Message
     
    The old guy makes sense.
    9 Jul 2012, 04:34 PM Reply Like
  • MorrisSean
    , contributor
    Comments (76) | Send Message
     
    Is this the same J.P. Morgan that has been manipulating the price of silver, etc. for years? They are probably looking for one last chance to buy before the MCP mine comes online... These guys have ZERO credibility in my book! Listen to the conference call where the Neo Materials acquisition was announced. The analysts on the call were falling over themselves congratulating management, except one for Neo (seemed pissed) because the price was to low.
    10 Jul 2012, 02:36 AM Reply Like
  • Mike Holt
    , contributor
    Comments (1632) | Send Message
     
    Neo's 80% global market share for bonded neo magnets (but not sintered neo magnets) is due primarily to its patents. However, per Neo's financial statements, a key patent is about to expire. So, future MCP revenues and profits may be lower than they have been as competitors move in (and there are many of them). MCP acquisition of Neo does give them access to know how in the downstream magnet production industry, but they may have overpaid for this due to the imminent patent expiration.
    10 Jul 2012, 08:27 AM Reply Like
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