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What: After a previous pop yesterday, shares of Molycorp
So What: Molycorp is one of the few companies outside China that's mining rare earth oxides, which are used to create batteries, certain ceramics, and lasers. Its customer list includes Albemarle
Now What: Molycorp is virtually the prototype for what we call an informed speculation. If you choose to invest, do so knowing that, like a biotech, the company will need plenty of funding to build a sustainable business. And even then, there are no guarantees.
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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.
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