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Rare earth stocks enjoy another big day after Dahlman Rose raises its price target for Molycorp...

Rare earth stocks enjoy another big day after Dahlman Rose raises its price target for Molycorp (MCP +11.2%) to $84 from $49. Also: AVL +18.3%, OSN +6.3%, GMO +4.6%, REE +4%. (ETF: REMX)
Comments (7)
  • Does anyone else think this is complete BS? MCP does not even make any money and nor are they producing anything yet. How could you effectively double your price target on this stock?
    3 Jan 2011, 10:53 AM Reply Like
  • here's how, Molycorp's HREE counterpart, former operating mine in Alaska.

     

    Company: UCORE
    Vancouver Exchange: UCU.V
    NYSE: UURAF.PK

     

    Industrial College of the Armed Forses, www.ndu.edu/icaf/progr...

     

    State of Alaska House of Represenatives: House Resolution #16
    treo.typepad.com/rarem...

     

    DOE_CriticalMaterialsS...
    www.energy.gov/news/do...

     

    News:H.R. 6160, the Rare Earths and Critical Materials Revitalization Act of 2010 (“the Act”), by the U.S. House of Representatives: “While these Acts together promise to give U.S.-based rare earth producers a remarkable edge in the race to replace specialty metals now dominated by China, very few domestic projects have the qualifications of Bokan as a strategic military and technological asset,” said Jack Lifton, a leading REE expert and a party to the initial drafting of proposed RESTART legislation. “As the largest historically documented Heavy rare earth deposit in the U.S., Bokan is a counterpoint to Molycorp’s primarily Light rare earth deposit at Mountain Pass in California. Together, these two deposits, located in relative proximity to each other and on U.S. soil, have the potential of liberating the U.S. from non domestic rare earth dependencies in the near term.”

     

    Ucore Investor Presentation Aug 2010.ppt
    treo.typepad.com/UCU%2...

     

    Chris DoD employee
    3 Jan 2011, 06:40 PM Reply Like
  • They have a mine coming into production sometime soon in 2011 and have lined up contacts already. They are one of the few mines outside of China that will be producing as early as this year.

     

    It is really tough to value this sector right now as China is a big wildcard. There is no doubt that demand for these metals will continue to rise as clean energy, technology, electric cars, etc become more prevalant. The story here though is on the supply side as it seems most of these metals are mined in China and they are reducing their export quotas. Any company outside of China that is showing the ability to mine is getting a lot of attention right now.
    3 Jan 2011, 11:01 AM Reply Like
  • MCP is just HYPE, nothing else, 1st big bubble of 2011
    3 Jan 2011, 01:27 PM Reply Like
  • At one time China undercut companies like MCP. The result was MCP being priced out of the market. Since then China sees the benefit in having other rare earth mines contributing to world supply. Even China has a finite limit of production and doesn't want to depend upon foreign mines in later years. The point here is China would probably rather collude with other rare earth producers in the future rather than undercut as they did in the past. This means they'll likely be supportive of higher world prices thus giving MCP and other rare earth mines a bright future.
    3 Jan 2011, 02:37 PM Reply Like
  • MCP will end 2011 as the #1 atomic bomb of exploding bubbles. There is no way they can compete with China in cost effective refinement.
    3 Jan 2011, 04:32 PM Reply Like
  • All the comments here are surprising--when has fundamentals had anything to do with investing in this post-QE world? Buy the freakin' dip!
    3 Jan 2011, 10:17 PM Reply Like
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