Molycorp, Inc. (NYSE:MCP)

CAPS Rating: 2 out of 5

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Player Avatar FWWright (< 20) Submitted: 7/19/2012 6:44:05 PM : Outperform Start Price: $19.50 MCP Score: -88.46

MCP is a serious business with the potential scale to be a major player in the rare earths business. China is a bull in a rare earth china shop (pun intended) and will make the market volatile. I see their main competition coming from Lynas corp (australian) now that they have their processing plant "approved" in Malaysia - BUT that plant is still a risky operation. That makes MCP the top dog outside of China for a while to come. Disclosure - no current position in MCP but may sell puts if the the price drops.

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