Molycorp Is in a No-Win Situation

Molycorp (NYSE: MCP  ) is rapidly increasing production but the company is still losing money on rare-earth minerals. The big question for investors is: What will happen to prices and profits when production goes from 7,000 metric tons to 40,000 metric tons? The Motley Fool's Erin Miller sat down with Fool.com contributor Travis Hoium to see why he still doesn't see a reason to buy the stock even though production is picking up.

Looking for more commodities-based ideas? Download the free report, "The Tiny Gold Stock Digging Up Massive Profits." The Motley Fool's analysts have uncovered a little-known gold miner they believe is poised for greatness; find out which company it is and why its future looks bright -- for free!


Read/Post Comments (6) | Recommend This Article (5)

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.

  • Report this Comment On May 21, 2013, at 4:09 PM, theraven35 wrote:

    Actually, Travis, MCP said it would not be expanding beyond the 19,000 mts of Phase I until it was economic to do so. This news came out in January 2013. It is now May 2013.

    I know facts can be pesky things, but how about you get your facts straight first, and then put together a video report of this caliber. That set is amazing...

    Raven

  • Report this Comment On May 21, 2013, at 4:17 PM, stockpro69 wrote:

    Insiders are buying. Enough said?

  • Report this Comment On May 21, 2013, at 4:46 PM, graciefan1 wrote:

    You need to do better DD Travis

  • Report this Comment On May 21, 2013, at 5:21 PM, DoyourownDD wrote:

    Funny - yes, great set - no offense, and trivial, but he's not exactly sending the success message with his "corner office" -- and the Trump book in the background, Trump is a joke, with more sizable bankruptcy filings of anyone with such a ridiculous persona that the public continues to feed...he's a joke, I'd never buy his book or watch his show or do anything that TOOL is involved in...Travis, read something else, please...and throw that book away

  • Report this Comment On May 26, 2013, at 9:32 PM, tjsimone wrote:

    Travis does great dd. i have followed him on SPWR, and i have a 4 bagger already, and he not only recommended it, but added excellent facts to the story. I own mcp, and appreciate his research....i think he is one of the more polished MF writers....andi follow him....

  • Report this Comment On June 01, 2013, at 10:44 AM, docrew0 wrote:

    Seems the devil is in the details. Interesting price action Friday May 31st, rumors to kick up the price and an overwhelming downward pressure from the markets brings it down. It's reassuring to see with all this artificial volume that shareholders are holding fast and institutions are soaking up the excess. I've long felt Molycorp is the only REE play in the western hemisphere and they will soon be the most cost effective miner in the world. Thats not just my opinion the bought/sold ratio puts a period on the sentence.

    See: Examining Options and Block Trading Activity for Molycorp (MCP)

    Posted on 05/31/2013 by Jane Lacave

    http://www.avafin.com/articles/1023787.html

Add your comment.

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: 2444957, ~/Articles/ArticleHandler.aspx, 9/21/2014 6:32:50 PM

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