Molycorp, Inc. (NYSE:MCP)

CAPS Rating: 2 out of 5


Player Avatar Lordrobot (91.53) Submitted: 11/28/2010 2:15:13 AM : Underperform Start Price: $30.35 MCP Score: -57.40

They may as well mine krap. This is one of the truly great cons of all time because rare earth metals are in fact not rare at all. Its just a name. But because only China will do this work for such a low margin, 90% is mined in China and about 10% in South Africa. It is not fun, it is not profitable. It basically sucks as a business. MCP is a joke trying to punch out as much PR as possible. I am waiting for them to threaten a stock buy back.

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Member Avatar gwanoy (< 20) Submitted: 12/3/2010 10:36:11 PM
Recs: 0

The price increase in Rare Earth metals over the past few years is no joke.
Nor was China's threat to halt sales to Japan.

Member Avatar Lordrobot (91.53) Submitted: 12/16/2010 10:56:42 AM
Recs: 0

Its no joke but MCP is a joke. They mine exactly nothing. Their who business plan is to hype the rare earth metals [anything but rare] as a security issue in order to hype their stock which really isn't a company at all. They don't mine a freaking thing. Also, most so-called rare earth metals can be substituted but even if they aren't, an average lap top contains less than 50cents worth of rare earth metals.

MCP is relying on a lot of stupid people to buy into the hype that Rare means "lacking in abundancy" but that is false. Rare earth metals are everywhere but the amount of ore that needs to be milled is huge to get any yield so the work is very very low margin and can only be done at coolie wages. There is no pardon the experession earthy reason why the US should mine this crap. No business could be sustained unless the geniuses at homeland security determined that the US was in huge danger from national security and felt that the US should mine it themselves. For what? To prove we are stupid or that the pentagon can afford $500 capacitors? Get a life. Rare earth is the biggest scam going.

Member Avatar mikecart1 (98.83) Submitted: 12/28/2010 10:25:50 AM
Recs: 0

Molycorp is the 2010 version of Enron. I just like to sit back and see how high it will go before it all crashes.

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