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3 Reasons Why Molycorp Inc Has Major Upside

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inthemoneystock
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3 Reasons Why Molycorp Inc Has Major Upside  Reply with quote  

Molycorp Inc (NYSE:MCP) is a rare earths play that has been pounded. The stock is trading at $1.31, from a 52 week high of $7.59. This stock is forming a nice technical bottom and will likely see a major pop soon. Below are the three reasons.

1. On September 11th, 2014, Molycorp Inc (NYSE:MCP) secured $400 million of funding. This means they have enough cash to operate for quite some time before bankruptcy is an issue. If they can reach certain milestones, it is likely more funding will be made available. As Molycorp is trading at near bankruptcy levels, it is undervalued and likely will rise.

2. Rare earth is a main component of missiles and radar systems. With global conflict soaring, involving almost every major world power, prices are likely to go much higher. This will boost the chance of Molycorp meeting its key numbers and potentially turning a profit.

3. Per their press release on Tuesday, September 30th, 2014, "Molycorp Announces that its Expanded Leach System Has Now Been Placed Into Service at its Mountain Pass, California Facility". They appear to be on the right course of action, moving towards expanding production just as prices should begin to increase.

In addition, the chart has obviously bottomed on the daily, signal a technical pop on the horizon.

Disclosure: I am long MCP calls.

Gareth Soloway
InTheMoneyStocks
Post Thu Oct 02, 2014 7:19 pm
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oldguy
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quote:
Rare earth is a main component of missiles and radar systems. With global conflict soaring, involving almost every major world power, prices are likely to go much higher.


lol - are you predicting that they will rush to the global conflicts in their Prius? (A Prius uses lots of RE.) But RE is not a 'main component' of missiles and radar systems.
Post Thu Oct 02, 2014 10:11 pm
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