Molycorp Inc (MCP-N)

(A Top Pick August 31/12. Down 41.80%.) This was a regretful choice because they had an SEC investigation, which she didn’t like, so she sold her holdings. In addition, rare earth prices are coming down dramatically. Also, have a very high debt level.

(A Top Pick Aug 31/12. Down 52.15%.) There was an investigation by the SEC so she sold her holdings.

Rare earths. Chart indicates a bottom this spring at around $4.80. A double bottom is shown indicating that $4.80 has been tested. A slight base is shown. If it broke the current level, $0.10-$0.20 below where it is now, it would probably be time to exit. Right now it looks reasonable but you can’t tell enough if it is going to be a winner from here.

Embarked on a very aggressive expansion program. Rare earth hype is behind us. Raised a lot of debt and pricing is not supportive of that. Unless pricing on rare earths improves they could be in big trouble.

A very hard name to trade on a technical basis because of its volatility and the negativity surrounding the company. Rare earth fanatical enthusiasm has dried up so it can be very difficult for these companies to earn back the premium that they used to trade in. This company has very high levels of debt.

Has a pure molybdenum and rare earth play in the US. Going into production shortly. Were pressed to raise money recently at the $10 level which depressed the stock price. Moly prices have been depressed lately in the $8.50 level. He can see the price going up to the low teens if and when they go into production. High debt level.

Loves the rare earth space. Is investable for years and years to come. This stock though has been devastated. This is the lowest it has ever been in history. If you have a 5 or 10 years view, then yes, get it, but if a trader, then don’t.

If it breaks its lows he would get out.

Stock has lost about 90% of its value and yet fundamentals of the story have improved greatly. Started up a rare earth mine in California and acquired Neo Material. Looking to transition themselves to be a vertically integrated player in the rare earths markets. Also, have joint ventures with some of the Japanese players who make the actual final magnet product. This will hugely improve their margins as well as lower their cost of production. Being the only large player in the Western Hemisphere she is not worried about them being able to sell their product. A lot of growth to the story.

Very interesting looking chart. The little gap that we have seen recently is a very positive sign. Trend reversals are important. When a stock is heading down, it is either continuing heading down to zero or is going to find a holding point and a reversal point. This one has a reversal point. Volume on the uptick is pretty good. Use $9.50 as a stop. You could maybe see it going up to the $16 level.

Announced that Q2 was going to be a miss and that they would require financing to develop a mine. There is some weakness until they raise money. 1 of every 4 shares are shorted today. There will be some short covering at some point.