Rare-earth materials have been in a slump and the companies in that sector are no different. Molycorp (NYSE:MCP) is down roughly 40% year to date, so the question remains: Is the stock finally cheap enough to buy. Furthermore, with the potential of a new rare-earth deposit in Wyoming going to competitor Rare Element Resources (NYSEMKT:REE), Molycorp faces several challenges.

In the video below, Fool.com contributor Doug Ehrman discusses the current position of the stock and why, despite still qualifying as a highly speculative play, you may wish to consider the stock for your commodity portfolio.

Fool contributor Doug Ehrman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.