Molycorp Plunges

Tyler Durden's picture

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.

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jesusfreakinco's picture

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


mogul rider's picture

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

UninterestedObserver's picture

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

NoBull1994's picture

who says you "can't eat Praseodymium"?

Manthong's picture

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.

Sokhmate's picture

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

silver4me's picture

Wow. Kinda surprised it didn't go higher

UninterestedObserver's picture

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

DaBernank's picture

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

UninterestedObserver's picture

I just realized we are supposed to be BTFD right now

Long-John-Silver's picture

French Onion Dip with Libyan Chips are my favorite.

Urban Roman's picture

This is not the FD you are looking for.

Move along..

PaperBear's picture

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

China will end their exports of rare earth elements.

Alex Kintner's picture

What a freakin MollyAnna. BTFD already.

treemagnet's picture

Okay I'll bite, whats praseodymium?


Flakmeister's picture

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

There is a thing called google....jeez

FoieGras's picture

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

knowless's picture

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

disabledvet's picture

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

Paralympic Equity's picture

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.

FunkyMonkeyBoy's picture

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. 

Long-John-Silver's picture

The Federal Reserve Discount Window is open 24/7.

Sophist Economicus's picture

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



sun tzu's picture

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

Flakmeister's picture

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..


topcallingtroll's picture



Americans are fucking pikers next to the great ones.

Saxxon's picture

There you go being hurtful again.

Common_Cents22's picture

Expected after a 570% run in 12 mos.

NidStyles's picture

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.

SheepDog-One's picture

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.

Josh Randall's picture

I smell a 10 for 1 reverse split soon

I am a Man I am Forty's picture

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

ceilidh_trail's picture

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

Paralympic Equity's picture

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.



Andy_Jackson_Jihad's picture

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

Flakmeister's picture

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...

DoChenRollingBearing's picture

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.

Flakmeister's picture

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.

DoChenRollingBearing's picture

It apparently trades here int he US as GWMGF, at least 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!

DoChenRollingBearing's picture

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.

I am a Man I am Forty's picture

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

wirtschaftswunder's picture

MCP owned silver after all?

Ted K's picture

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.


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

DoChenRollingBearing's picture

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...