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 rare-earth metals miner Molycorp
So what: Inner Mongolia Baotou Steel Rare Earth Hi Tech Co. (say that three times fast, I dare you) reported that its revenue jumped by 119% while earnings spiked 363%. Although the company's results were incredibly strong, it did caution that weakening prices have shown no sign of flattening out and could impact earnings in the second half of the year.
Now what: With China still gobbling up the majority of rare-earth metals, which are used in the production of all types of electronics, today's results bode well for the overall health of the rare-earth industry. The entire sector is seeing a nice boost today, but most notable is Molycorp's move. Being one of very few rare-earth mines already in the production stage, Molycorp holds a definitive advantage over Avalon Rare Metals
Craving more input? Start by adding Molycorp to your free and personalized watchlist so you can keep up on the latest news with the company.