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Molycorp (MCP -15.3%) is downgraded to underweight at JPMorgan, whose Mike Gambardella unloaded...

Molycorp (MCP -15.3%) is downgraded to underweight at JPMorgan, whose Mike Gambardella unloaded on management in last night's earnings call. "I'm a bit shocked at this call because its seems to be a total disconnect from what the management is saying and what you put down in your outlook" regarding funding issues. (earnings)
Comments (4)
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    Should have stayed short - exited a little below $18...management obviously sending mixed messages to investors. Costs will be a further drag going forward. Where is the bottom and a stable story for the company? May take a few quarters to work out the picture.
    3 Aug 2012, 11:06 AM Reply Like
  • fnoobler
    , contributor
    Comments (228) | Send Message
     
    Paranoid conspiracy theory anyone?

     

    If China wanted to glut markets with rare earths to set back production outside China, the best time to do it might be before Project Phoenix is up and running.

     

    That's a huge "if", and I don't mind admitting that I've got more imagination than expertise on this subject.

     

    Apart from that I have the impression MCP are generally good on execution, but are embarassed by unexpected price falls.

     

    I've been waiting for a lower share price before buying but now it's happened I'll wait until they're better financed and less vulnerable to rare earth price falls.
    3 Aug 2012, 04:07 PM Reply Like
  • Russ Winter
    , contributor
    Comments (648) | Send Message
     
    The JPM analyst was an idiot on this call. He questioned MCP management even about the challenge of buying a $80 million cogen plant. MCP isn't that leveraged, so he was suggesting that the vendor wouldn't finance this purchase, as in 'would you like to sell us $80 million in equipment for a project that is up and running?" Get real. This is a classic dumb analyst downgrade buying opportunity.

     

    The second quarter results are meaningless. as the Molycorp Canada acquisition only accrued for 19 days. A full quarter will take 200-250 million to the top line.
    4 Aug 2012, 06:04 PM Reply Like
  • That tax guy
    , contributor
    Comments (8) | Send Message
     
    I see A LOT of short covering and squeeze on the horizon in this one.
    6 Aug 2012, 10:55 PM Reply Like
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