Molycorp, Inc. (NYSE:MCP)

CAPS Rating: 2 out of 5


Player Avatar iversonj88 (54.47) Submitted: 11/18/2010 7:45:49 PM : Underperform Start Price: $28.20 MCP Score: -97.57

China is holding way too much sway over these companies as they decide what to do with their enormous store of these metals. I'm not saying that growth in China will slow, but as the Chinese realize its ok to sell off some of these precious resources and still have plenty left over themselves, they are going to drastically increase supply in this market over time. While the exact time frame is important and delicate, if it is anything but subtle and oh-so-smooth, it will be hard for companies like Molycorp to continue growing on their over-priced resources in the years to come

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