Molycorp, Inc. (NYSE:MCP)

Water resource play

CAPS player vanamonde

their products are not found just anywhere.they are the largest.will continue to grow sales.

EV, hybrid, and plug-hybrid motor vehicles need lots of rare earths for the electric motors.

Rare earth minerals have to go up. They are involved in the development of all new technology. Lasers, tablets, fiber optics... Not to mention MCP primary competition comes from a communist country which tends to shut down their exports.

In all likelihood assets are not impaired as much as originally thought. They are the only miner in the Us mining rare earth metals. The market for rare earths is low right now. Buy now to harvest capital gains later, plus solid dividend.

Hree ore deposits is what MCP has the most of to be drilled as China cuts quotas brings ree prices higher

If you can wait out 2013 molycorp will payoff

Lower than expected revenues compounded by need for capital expenditure to maintain status quo, spells look out below.

expect them to recover when production from Mtn Pass targets, expect REE pricing to recover as China cuts back production and mkt continues to grow

Can't fail. Government won't allow it.

This is clearly a falling knife, but if the earnings estimates are anywhere near correct, the falling should stop soon. If China clamps down on rare earth exports again, price has significant upside. For my CAPS score, it is worth a roll of the dice.

When you have to make additional offer due to financial stress, the situation won't change quickly. I think MCP is gonna stay low for a while(say 6-12 months), although I deem their fair value shall be 25+ once economy improves on the other side of the planet.

wish get buyout

As US growth regains momentum, this domestic source of REEs will become more important.

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.

One of larger and currently operating REE companies located in the U.S. with recent and important under its belt.

Rare earth demand is not going away. I beleive it will grow as technologists find more uses for it in every day utensils, albiet luxurious utensils.

Bought more MCP prferred A today @ $62.25. With a $5.50 annual payout, I am well compensated while waiting for full production. Note: the Preferred is a mandatory convertable in March 2014 (I'll decide to convert or sell early in 2014).