Molycorp Soars After Making A Strategic Acquisition (Transcript)

Greentech Media submits: By Michael Kanellos Molycorp (MCP), the Cinderella of the mining industry, said today that it would buy 90% of AS Silmet, a European supplier of rare earth minerals.

Michael Filloon submits: The rare earths have been on fire. Several good companies with decent assets are in rare earth development. Many are not in the production phase. Molycorp (MCP) seems to be ahead of the game, and that has helped its securing of contracts to provide this production. Avalon (AVL) has a fairly large percentage of heavy rare earths.

Jeb Handwerger submits:There have been major developments occurring this week in the rare earth arena, which could hold significance for the expansion into Europe of Molycorp (MCP) and the development of a US domestic supply chain of rare earths (Market Vectors Rare Earth/Str Metals ETF (REMX).

By Joseph L. Shaefer: There are three ways to own rare earths giant Molycorp. You can buy the common stock (MCP), which is as far as most investors look. Or you can buy the soon-to-be-redeemed convertible preferred shares (MCP pr A), which we've now bought and sold 3 times and made good money on over the years. I no longer recommend these. The third way is little-known, but as the old Western Airlines ad used to say, for me it is "the only way to fly."

By The Gold Report:Molycorp's poor performance has impacted the entire rare earth sector. Until the rare earth element "super-cycle" gains steam again, investors need to reset their expectations. In this exclusive Critical Metals Report interview, Chris Berry of House Mountain Partners discusses what really matters in a rare earth element company, and why investors should exercise patience.

By Nick Pollari:In an effort to mitigate risk and better handle tough swings in the market turmoil, we have recently been extending our overall investment horizon of the fund. We normally make investments that tend to play out to a maximum of six months. We have concluded that today’s exuberant sell off in Molycorp (MCP) is far overdone and a thorough lack of understanding behind the firm’s future outlook is what is playing out.

The fundamentals of Rare Earths do not really matter to me, nor do China’s actions in that regard, further loans from the United States government, or really any of the fundamental arguments in favor of the stock. Dahlman Rose has an $85.00/share price target on the stock, but no other Wall Street firm believes this stock is worth anywhere near that. Piper Jaffray’s price target is a more down to earth $43.00/share. But Wall Street sell-side price targets are not the reason for being short this stock either, nor are any valuation fundamentals.

By Engineer Broker:Molycorp's (MCP) 2Q earnings were almost spot on with my estimates with one large but temporary exception. In Molycorp's earnings release the company recorded sales of 217 mt of REO product from Silmet, yet also stated that Silmet was running at 381 mt of REO in 2Q. Listening to the earnings conference call leads one to believe that the sales are one month behind the production and thus e