This page has been archived and commenting is disabled.

Molycorp Plunges

Submitted by Tyler Durden on 05/10/2011 16:22 -0400

And another momo dream of fast riches bites the dust. And not even a single margin hike was required. The reason: huge revenue miss, with top line coming at $26.3 million on estimates of $41.7 million. EPS are obviously irrelevant in this context. Additionally, Molycorp says that Japan may hurt market demand in Q2 and Q3... BUT... it sees demand fully recovering by Q4. Press release was likely drafted by Jean Claued Junker and edited by the Wall Street Journal. In other news, one still can't eat Praseodymium.

- advertisements -

Tue, 05/10/2011 - 16:26 | 1260388 jesusfreakinco

Don't be dissing the dariling of my portfolio...

JFC

Wed, 05/11/2011 - 06:47 | 1262133 mogul rider

The pumpers slaughter the stupids -yet again

Who needs HFT's when morons buy this crap. Flash crashes are fish cleanign parties as this POS highly illustrates.

Anyone actauly admitting to owning here is truly a moron. If anyone had done their DD you woudl have asked why MOLYCORP went tits up in the first place. China.

The military diversification pump went perfectly folks well done. It was squid like in it's perfection

Tue, 05/10/2011 - 16:27 | 1260390 UninterestedObserver

I thought revenue misses were almost as good as revenue increases - someone kick the black box...

Tue, 05/10/2011 - 16:27 | 1260391 NoBull1994

who says you "can't eat Praseodymium"?

Tue, 05/10/2011 - 18:22 | 1260819 Manthong

Hold on.. I smell a reversal..

Word is that they are looking to announce a new field with a yield of 900g/t of Vasoleneum.

Tue, 05/10/2011 - 18:38 | 1260856 Sokhmate

some dont't stomach it, just as they don't stomach Absurdium and Gullibillium.

Tue, 05/10/2011 - 16:24 | 1260393 silver4me

Wow. Kinda surprised it didn't go higher

Tue, 05/10/2011 - 16:28 | 1260403 UninterestedObserver

Right - ramp up in anticipation of meeting revenues in Q4!

Tue, 05/10/2011 - 16:25 | 1260400 DaBernank

the momo guys waiting for an entry point might buy here.

Tue, 05/10/2011 - 16:29 | 1260407 UninterestedObserver

I just realized we are supposed to be BTFD right now

Tue, 05/10/2011 - 16:41 | 1260467 Long-John-Silver

French Onion Dip with Libyan Chips are my favorite.

Tue, 05/10/2011 - 17:41 | 1260678 Urban Roman

This is not the FD you are looking for.

Move along..

Tue, 05/10/2011 - 16:29 | 1260408 PaperBear

Lynas and Arafura both of Australia are other rare earth element companies.

China will end their exports of rare earth elements.

Tue, 05/10/2011 - 16:29 | 1260410 Alex Kintner

What a freakin MollyAnna. BTFD already.

Tue, 05/10/2011 - 16:33 | 1260424 treemagnet

Okay I'll bite, whats praseodymium?

Tue, 05/10/2011 - 16:32 | 1260431 Flakmeister

A close relative of Samarium...They live across the water from Europium.

There is a thing called google....jeez

Tue, 05/10/2011 - 16:41 | 1260495 treemagnet

Okay I'll bite, whats google?

Tue, 05/10/2011 - 16:41 | 1260496 Rick64

lol

Tue, 05/10/2011 - 16:34 | 1260440 FoieGras

Oh wow some random mid cap dropped 10%... didn't know this was newsworthy!

Tue, 05/10/2011 - 17:15 | 1260613 knowless

I was under the impression that rare earths were necessarry for modern electronics.. or something along those lines.

Tue, 05/10/2011 - 17:47 | 1260703 topcallingtroll

slow day.

Tue, 05/10/2011 - 16:38 | 1260447 disabledvet

what's that price to sales number again? "millions" in revenue? on a market cap of "what" again?

Tue, 05/10/2011 - 22:52 | 1261556 ceilidh_trail

So what's your point?

Tue, 05/10/2011 - 16:39 | 1260456 Paralympic Equity

Well, if you realise that they produce actualy nothing, than it is still overpriced. But the rare earths story is not one we should dismiss that fast. There are a lot of other good companies in the sector which are actualy producing something. The key thing is that they should produce out of china, and that is rare, as the metals.

Tue, 05/10/2011 - 16:38 | 1260463 FunkyMonkeyBoy

Don't worry, in 24 hours time and some fascist futures pixie dust, the 'plunge' will be reversed.

Brought to you buy the scum of the earth USA government, the biggest crooks and murders history has ever seen.

Tue, 05/10/2011 - 16:43 | 1260488 Long-John-Silver

The Federal Reserve Discount Window is open 24/7.

Tue, 05/10/2011 - 17:03 | 1260568 Sophist Economicus

Brought to you buy the scum of the earth USA government, the biggest crooks and murders history has ever seen

...Next to the European greats like Hitler, Stalin, Mussolini, Count Franz Conrad, Wilhelm II, Count Vladimir the Impaler, Hadrian, Julius Ceaser, etc, etc etc

Being the gracious American that I am, I thought I'd help you finish your sentence. I know it isn't a comprehensive list, but Europe has had so many murderers as leaders I hardly know where to start. But you get the idea

Tue, 05/10/2011 - 17:29 | 1260649 sun tzu

You forgot the English and French imperialists who once ruled most of the world and our favorite bankers, the Rothschilds.

Tue, 05/10/2011 - 17:33 | 1260666 Flakmeister

Just to finish your thought, human beings seem to be very adept at murder and its derivatives....This ability has been demonstrated to be independent of geography and cultural beliefs.

History is replete with people willing to kill on the basis of their beliefs and/or greed...No need to cherry pick..

Tue, 05/10/2011 - 17:49 | 1260698 topcallingtroll

AHEM.....MAO? POL POT? EVERY FUCKING TUTU IN AFRICA?

ALEXANDER THE GREAT PSYCHO? GHENGIS KHAN?

Americans are fucking pikers next to the great ones.

Tue, 05/10/2011 - 17:52 | 1260709 DoChenRollingBearing

+ 1

At least so far...

Tue, 05/10/2011 - 18:50 | 1260888 Saxxon

There you go being hurtful again.

Tue, 05/10/2011 - 16:43 | 1260484 Common_Cents22

Expected after a 570% run in 12 mos.

Tue, 05/10/2011 - 16:41 | 1260491 NidStyles

Here I was trying to figure out the hype bhind this ticker. Made no sense to me why this company was rated so highly when they have nearly zilch for revenue and razor thin margins. Glad I never got interested enough to look any further than that.

Tue, 05/10/2011 - 16:48 | 1260526 SheepDog-One

Kinda reminds you of the last days of the good ol .com bubble huh? Back then everyone also said 'BTFD' and indexes can only go higher. Till they suddenly didnt.

Tue, 05/10/2011 - 16:44 | 1260494 Josh Randall

I smell a 10 for 1 reverse split soon

Tue, 05/10/2011 - 16:47 | 1260521 I am a Man I am...

WTF, molycorp is a 5.5B dollar company with at LEAST $35M in revenue, what's not to like? they better have a bunch of shit in the ground

Tue, 05/10/2011 - 22:55 | 1261579 ceilidh_trail

EXACTLY! My good friend harry wanger says, "BTFD!" I mean, what else ya gonna do with your cash, preserve it?

Tue, 05/10/2011 - 16:50 | 1260530 Paralympic Equity

I think that the only thing that has kept this ticker levitating was the fact that "The Empire" won't allow the chinese to be the only to produce metals that are used in weapons. And they need those weapons to spread democracy.

http://www.youtube.com/watch?v=vlIm-riMN6Q

Tue, 05/10/2011 - 17:15 | 1260617 Andy_Jackson_Jihad

And MCP has involvment of all the usual suspects. REE suposedly has just as much in the ground but half the market cap.

Tue, 05/10/2011 - 17:24 | 1260634 Flakmeister

REE and Molycorp are completely different beasts. Molycorp is rehabbing what was once the largest RE mine in the world, REE has a nice office and a drilled claim, no mine or infrastructure yet.

Did MCP get ahead of itself? Hell yeah. Is it one of the most interesting mining plays in the world? Damn sure...

Tue, 05/10/2011 - 17:42 | 1260688 DoChenRollingBearing

Hell yeah. MCP way ahead of itself.

A problem with company is that it has fewer of the Heavy Rare Earths that are relatively more scarce and valuable.

Also, it does not have refining and fabrication facilities to add value to their ores. Turning the rare earth ores into materials suitable for magnets, lasers and phosphors. I did read somewhere that MCP is making deals with such processors.

If MCP works out in the coming years, maybe they would buy Avalon (AVL) which has a big rare earth deposit (with lots of Heavy RE metals) located in N. Canada, far away from infrastructure. It looks like AVL would need to be taken over by a big player, an MCP or a Rio Tinto / BHP.

Tue, 05/10/2011 - 17:50 | 1260710 Flakmeister

MCP and Lynas are both weighted towards LREE. AVL.TO is the real deal for the HREE but that one has also gotten ahead of itself. Was in at 0.90 sold my last when hit 7.50... AVL is still on the watch list, may consider starting to get back at in the $6 level.

My personal fave is GWG.TO, they are developing a beautiful vertically intergrated RE company. The real value added is in the fabrication of the alloys. They currently control 20% of the worlds Samarium Cobalt alloy market. They are getting feedstock from a rehabbed South African mine. They also have an undeveloped play in Hoidas Lake, NWT.

Tue, 05/10/2011 - 17:59 | 1260743 DoChenRollingBearing

It apparently trades here int he US as GWMGF, at least stockcharts.com has it listed on the Pink Sheets.

I had forgotten about Great Western. I once looked at this company as well, they have at least two facilities that can turn rare earth ores into higher value added products. I should take another look at GWMGF. Maybe BTFD!

Tue, 05/10/2011 - 20:18 | 1261097 I am a Man I am...

Any thoughts on Thomas Creek (TC)??

Tue, 05/10/2011 - 20:28 | 1261112 DoChenRollingBearing

TC is Thompson Creek (I think). They mine molybdenum, a heavy & tough metal used in steel alloys. I have heard of the company, but know next to nothing about.

Sorry I could not be of help.

Tue, 05/10/2011 - 23:45 | 1261741 I am a Man I am...

your right, sorry, multi-tasking when i typed, just wondering why they weren't going sky high with the rest while they are actually producing molybdenum

Tue, 05/10/2011 - 16:55 | 1260548 wirtschaftswunder

MCP owned silver after all?

Tue, 05/10/2011 - 17:33 | 1260661 Ted K

This has to be one of the most funny/hilarious write ups of a topic ever by Tyler Durden, and he has done some humorous ones.

+20

I do feel sorry for the MCP investors for buying analyst whores recommendations though.

Tue, 05/10/2011 - 17:49 | 1260699 DoChenRollingBearing

Just before MCP's IPO at +/- $13.00 it was owned 25% (or so) by Goldman Sachs.

I kept in mind the old ZH maxim: don't buy what GS is selling... And so I did not buy it.

...

There are exceptions to every rule...

Tue, 05/10/2011 - 17:46 | 1260680 LRC Fan

So classic. When stocks are ramping up on no volume, they are "pricing in good earnings" but then when earnings miss, they go ahead and "price in" future earnings 3+ quarters down the line, totally ignoring the upcoming shitstorm that is/will be Q2/Q3/Q4 of 2011.

Saw a Bloomberg article a few nights ago where some idiot said "the Japan quake will spur an incredible housing boom" and just laughed pretty hard at how fucking stupid people are for reading stuff like that and taking it seriously. I honestly only watch CNBC/MSNBC/FOX/Bloomberg for comedy, I love when people watch 60 Minutes and get all serious and I just sit there laughing the whole time at how ridiculous it all is. Osama buried at sea? Sure, "we had to." Lmaoooooo next lie plz.

Also, nothing, and I do mean NOTHING AT ALL, would be greater than going uber short on some weekly options right around July 1 and basically 100x'ing any fiat you have when the market shits itself, then immediately cashing out and buying silver/gold. It would be the ultimate FUCK YOU to these vampires, and then you could sit back and laugh your ass off at CNBC and the other blowhorns who "never could have seen it comin." Lord knows I love a good gamble, and I'm gonna set aside a few fiats for just this purpose. Should be an interesting summer.

The question of our lives is which "unexpected event" will pop up between now and maybe September that will distract the masses from the coming shitstorm. Terrorist attack? War with Iran? Pakistan? Something that gets Obama impeached? Somehow not raising the debt ceiling? Those would be hilarious.

I also wonder if we will see the Euro completely shitting itself? Gas lines? A DXY below 60? Ahhhhh I can't fucking wait for summer bitchezzzzzzzzzzzzzzzzzzzzzzzz bring it on!

Tue, 05/10/2011 - 17:48 | 1260705 DNB-sore

what happened with HSBC today, a 3% crash in minutes and got revived whitin the moment and during the next hours with small gains/investors. HSBC getting a crash again?

Tue, 05/10/2011 - 18:03 | 1260750 agrotera

Molycorp produces so little at this point, it seems silly silly silly to discuss the earnings--just silly....the company is ramping up to be a significant producer of elements that currently are monopolistically produced in China and barriers to entry are too huge and time consuming to even discuss here.

Tue, 05/10/2011 - 18:07 | 1260777 Catullus