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Molycorp (MCP -2.2%) moves lower again after Morgan Stanley downgrades shares to Equal Weight...

Molycorp (MCP -2.2%) moves lower again after Morgan Stanley downgrades shares to Equal Weight following Friday's disclosure of a formal order of SEC investigation. While it's possible the worst case scenario already is priced in, the firm says uncertainty surrounding the issue and the possibility that it will take some time to resolve leads to the downgrade.
Comments (6)
  • Once a do brainer for REE'S is now a dying company...Oil by 2017 will kill it for now..
    13 Nov 2012, 10:33 AM Reply Like
  • Lynas is soon to follow as well..
    13 Nov 2012, 10:47 AM Reply Like
  • I still have faith that a very big surprise is coming to those who
    are disenchanted with the REEs, especially the HREE producers.
    All eyes should be on China. I am adding both MCP and LYSCF.
    We will be exporting to China soon.
    13 Nov 2012, 04:52 PM Reply Like
  • The Dream never dies, only the Dreamer .....

     

    PS : Someone didn't like my previous Comments apparently ;-) ?
    14 Nov 2012, 07:41 AM Reply Like
  • Is it Time at last to buy MCP in order to lose even more Money again ;-) ?
    14 Nov 2012, 07:43 AM Reply Like
  • MCP had a decent Q3 and the conf call was upbeat on pricing and volumes with clients ordering after running down their inventory.
    Nothing was said about the SEC investigation and hence, although the shares were up initially given the decent numbers and outlook, the stock was dumped massively. MCP made the biggest error by not being open and transparent to its shareholders and it will therefore take a long time before investors will once again trust the current management team. The lack of communication has given more ammunition to the likes of Jim Cramer who never substantiates why he is not interested in the stock or the sector and the hedge fund community who was massively short the stock, albeit from very high levels when the company was still in a start up phase. If the SEC finds nothing seriously its time to move back to fundamentals but with a steep discount given serious flaws in basic investor relation policies.
    14 Nov 2012, 04:53 PM Reply Like
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