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Molycorp (MCP) Stock Up - Takeover Rumor
Molycorp (MCP) stock rallied about 5% on Friday after the company was subject to another takeover rumor. Molycorp (MCP) closed at $31.72, one of the highest closes since early December 2011.
As most of you know, Molycorp (MCP) mines and produces rare earth elements or metals. MCP was one of the hottest stocks early last year when the stock rallied 100% from $40-$80. Rare Earth Metal prices were going through the roof. However, rare earth prices started dropping by mid 2011 and were tanking in the fall due to the European mess. So far in 2012, rare earth metal prices have leveled out and are now flat. This is causing the rare earth stocks to make a dead cat bounce. Takeover rumors should not be dismissed but an actual buyout probably won't happen.
Earnings: Molycorp (MCP) is set to release earnings on February 27, 2012. The stock is trading at just 11 times 2012 earnings right now. Estimates for the 2/27/12 earnings release are $0.45 EPS on 130.4 million in revenue. Any beat on earnings should send this stock back to $35-$40 easy. The mountain pass mine will open by mid year and Molycorp will begin to mine & process additional rare earths.
Looking at the chart, Molcorp (MCP) will have resistance located at $34.95. There is strong support down in the $27's on a sell off.
Tags: 2012, blog, earnings, forum, mcp, molycorp, opinion, stock
Views: 4023
Replies to This Discussion
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Permalink Reply by Stocks To Buy on -
Molycorp (MCP) is up today after Piper Jaffray reduced their price target from $60 to $50 but said they keep an overweight rating on the stock. Everything is coming together for the company to see strong growth in 2012
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Top MemberPermalink Reply by Danny on -
Could be a squeeze today in MCP?
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Top MemberPermalink Reply by Danny on -
Lost a little momentum from its highs in pre market and open
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Top MemberPermalink Reply by kevin w on -
china has lifted their restrictions on exporting rare earthminerals, reducing the importance of other production fromother places. -mcp- will feel it the most. its not that hotanymore. i sold my -mcp- a while back. don't think it isgoing to move up that much. i am surprised that it moved upfrom the the $23.00 bottom.
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Permalink Reply by nick on -
Got in at 32.29 any chance do you think it will run back up? its took a bad tun on me.
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Permalink Reply by Stocks To Buy on
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Moylcorp has been moving with the market. I probably wouldn't buy up here unless it was for a quick trade. We saw MCP go down when the market took a dip. Seems to be coming back a little right now.
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Permalink Reply by nick on
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Wow I am taking a hit on MCP do yo think it will go up tomorrow or it can get orse today and tomorrow?
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Permalink Reply by Stocks To Buy on
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Not sure, it just went back up to $32, now $31.50 again. The markets are really rolling over today.
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Permalink Reply by nick on
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MCP just washed me up I think I am done trading unless it bunces back up, not really any postive news out on it.
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Permalink Reply by Stocks To Buy on
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MCP is gapping up in pre market, here is your chance to get out $32.44 if you were stuck yesterday.
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Permalink Reply by Stocks To Buy on
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Chile Molymet Acquired 13% Stake In Molycorp For $390 Million - Huge News
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