Is Molycorp a Buy, Sell or Hold?


Apple and Google Declare War – Here's the Secret Winner

Resident tech guru Michael Robinson and I are both big science-fiction fans. Michael likes traditional sci-fi stories, like those of Robert Heinlein and Isaac Asimov. My sci-fi interests are more focused on “Golden Age” radio dramas, “pre-code” comics, and old movies and TV shows… like The Twilight Zone and The Outer Limits.

And when Associate Editor Cris Skokna joined our team a few months back, Michael and I were so pleased to discover that he was a sci-fi guy as well that I jokingly dubbed the three of us as “The Trilogy.”

And the other day, Cris told me a story that I absolutely had to share with you…

Molycorp Inc. (NYSE: MCP) took it on the chin yesterday after the rare-earth player announced another delay at its Mountain Pass, Calif. mine and conceded that problem would result in lower-than-expected revenue and cash flow.

The stock, which closed at $10.79 a share on Wednesday, plunged as much 25%, before rallying to close at $8.33, down 22.80% on the day.

I arrived at work yesterday morning to find e-mails from a number of you folks on this particular topic, including this one from subscriber Ellen S.

"Bill: Any suggestions on MCP today? Is this a great buying opportunity, or time to sell?"

Great question, Ellen...