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China sets at 46.9K metric tons its first rare earth production quota for 2013 - roughly half...

China sets at 46.9K metric tons its first rare earth production quota for 2013 - roughly half the level of 2012. Molycorp (MCP) gains 3% premarket, also helped by Lawrence Balter putting the stock on his list of 2013 underdogs to surprise. The bad news and then some is baked in, he says, keeping his $50 price target on the shares.
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Comments (10)
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    $50 price target? So it is going up 400% in one year?
    7 Jan 2013, 09:59 AM Reply Like
  • wildfirexx
    , contributor
    Comments (107) | Send Message
     
    A Flip-Flop Stock... Don't Buy It!
    7 Jan 2013, 11:18 AM Reply Like
  • lew69sd
    , contributor
    Comments (54) | Send Message
     
    MCP is definitely under-valued. One of the worst stocks in 2012, could be best of 2013...
    7 Jan 2013, 12:08 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    It is down for a reason.
    7 Jan 2013, 12:18 PM Reply Like
  • morongobill
    , contributor
    Comments (65) | Send Message
     
    Don't know about hitting Grant territory, but 2 pieces of excellent news should give it some pop for a while. China lowering production targets and guy at Barrons pretty good pr.
    7 Jan 2013, 01:29 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    One thing I learned, most analysts don't work in your favor. Barrons is probably more concerned with selling their articles than on beating the market.
    7 Jan 2013, 01:57 PM Reply Like
  • NEWSIF
    , contributor
    Comment (1) | Send Message
     
    over 6-12 you will double your pot!
    7 Jan 2013, 04:39 PM Reply Like
  • suryan
    , contributor
    Comments (174) | Send Message
     
    i like the chinese- yeah- corner all the reserves and then set a production quota- perfect communism. Ration it!!! hold all the countries at its mercy. So no matter what- it is compelling to buy this company becos the chinese are only interested in tightening the screw- this company will jump back- long mcp
    7 Jan 2013, 04:51 PM Reply Like
  • WPSPIKER
    , contributor
    Comments (1158) | Send Message
     
    Michael sorry about your obvious short loosing better cover now.

     

    Increased need for REEs are not slowing down EVERYTHING uses magnetic materials for the most part not including toasters.

     

    With Obama push toward Elec Cars and Scooters now the added / increased Wind Power and the bump in CAFE Standards. So Starters.Magnetic material use is having to go up SO MUCH means that only way for NEW cars going forward will be Engine Off/Start & go cycling on ALL new cars starting 2015. They are already doing this in MANY cars and Hybrids have done it for years.

     

    This few plays alone will push the used of REEs to 2 or 3 times what is was in 2010. Wind Power is gaining a lot of foothold all over the globe. European standards for fuel economy also are getting higher and customers demanding it as fuel costs are not going down.

     

    Secondary plays from this trend are Maxwell (MXWL) for their High Capacity Capacitors to be used with / in combination with Better Batteries. Battery Makers are several to look at.

     

    note LONG (MCP) (MXWL) no pos in EXID
    7 Jan 2013, 05:59 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5615) | Send Message
     
    Are you taking to me? I don't even own (MCP). I post all my holdings on my profile.

     

    (MXWL) is near support and seems likely to bounce up to resistance. One can argue (MCP) is at support. Yes, rare earths, like any other resource, will run out if no new supply is found. The risks just seem too high for me.
    7 Jan 2013, 10:54 PM Reply Like
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