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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.
So what: Dahlman Rose, which actually co-managed Molycorp's IPO, raised its price target more than 70% from $49 per share to a whopping $85 per share. Not surprisingly, Rare Element Resources (AMEX: REE ) and the Market Vectors Rare Earth/Strategic Metals ETF (NYSE: REMX ) are also up big on the bullish report.
Now what: Molycorp just keeps on rolling, but most investors still shouldn't buy into the rare earth bubble. Molycorp's valuation was already tough to justify at much lower prices, so betting on Dahlman Rose's $85 price target -- suggesting a market cap of about $7 billion -- just seems like a losing proposition. Of course, Molycorp's massive momentum has made this worry wart look silly recently and could certainly continue doing so!
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