Molycorp Shares Popped: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Molycorp (NYSE: MCP  ) finished trading today up 12%. Molycorp "focuses on the production and sale of rare earth oxides (REOs) from stockpiled feedstocks."

So what: There's no direct news from the company today, but shares likely popped because of several wire stories about China's decision to cut rare earth exports. Bloomberg says China's decision "is set to spark a global race for alternative sources that may still take a decade to secure sufficient supplies." A spokesman for the German commodities agency is quoted as saying, "We're faced with a gap in rare-earth supplies that cannot be plugged overnight."

Now what: Reuters says Molycorp CEO Mark Smith told a conference today that he doesn't expect a total embargo, but he does believe "we're going to see reductions in the export quotas coming out of China." Because Molycorp is focused on western hemisphere feedstocks, it's natural the stock would move up on the news. Rare Element Resources (AMEX: REE  ) was also up today, though only 2%.

Interested in more info on Molycorp? Add it to your watchlist by clicking here.

Fool analyst Rex Moore owns no companies mentioned here. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (8)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1345505, ~/Articles/ArticleHandler.aspx, 10/31/2014 5:54:31 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement