Not."...We mutually pledge to each other our lives, our fortunes, and our sacred honor."
I'm not sure why I thought of the last fourteen words of the Declaration of Independence when putting this post together but, well, there you go.
From Benzinga:
UPDATE: Dahlman Rose Lowers PT on Molycorp to $120
Dahlman Rose is out with its report today on Molycorp (NYSE: MCP), maintaining Buy.Dahlman has been part of the distribution on the IPO and both secondaries.
In a note to clients, Dahlman Rose writes, "We continue to view MCP shares as the best vehicle to participate in the rare earth industry. Even in a much lower rare earth price environment, we believe that the company can generate outsized returns. That being said we are modestly decreasing our price target to $120 from $125 to account for the additional dilution created by the convertible security"...
With a half-hour to go before the open the stock is off a quarter at $52.80.
I'm not sure why I'm bugged by officers selling in the secondary, it was in the prospectus, but I am.
Here's SECForm4:
Common stock purchase or sale:
| Transaction & Date  | Reported Date | Company | Symbol | Insider Relationship | Shares Traded | Average Price | Total Amount | Shares Ownership | Filing |
| 2011-06-15 Sale | 2011-06-17 5:19 pm | Molycorp, Inc. | MCP | Burba John L. (Executive VP and CTO) | 85,757 | $51 | $4,373,607 | 223,505 (Direct) | View |
| 2011-06-15 Sale | 2011-06-17 5:17 pm | Molycorp, Inc. | MCP | Ashburn John F. Jr. (EVP and General Counsel) | 68,604 | $51 | $3,498,804 | 184,252 (Direct) | View |
| 2011-06-15 Sale | 2011-06-17 5:15 pm | Molycorp, Inc. | MCP | THOMPSON JACK EDWARD (Director) | 27,823 | $51 | $1,418,973 | 69,195 (Direct) | View |
| 2011-06-15 Sale | 2011-06-17 5:12 pm | Molycorp, Inc. | MCP | Henry Charles R (Director) | 69,000 | $51 | $3,519,000 | 65,401 (Direct) | View |
| 2011-06-15 Sale | 2011-06-17 5:10 pm | Molycorp, Inc. | MCP | Bhappu Ross R. (Director 10% owner) | 5,747,883 | $51 | $293,142,033 | 13,843,863 (Indirect) | View |
| 2011-06-15 Sale | 2011-06-17 5:08 pm | Molycorp, Inc. | MCP | Smith Mark A. (President and CEO Director) | 174,915 | $51 | $8,920,665 | 774,318 (Direct Indirect) | View |
The Private Equity guys selling I understand. As someone once said "Private Equity is neither private nor equity" The PE selling is also at the Form4.
Here's Warren Buffett on Private Equity:
"You can sell it to Berkshire, and we'll put it in the Metropolitan Museum; it'll have a wing all by itself; it'll be there forever,'' he says at the February meeting. ``Or you can sell it to some porn shop operator, and he'll take the painting and he'll make the boobs a little bigger and he'll stick it up in the window, and some other guy will come along in a raincoat, and he'll buy it.''Here's Barron's Inside Scoop:
Molycorp CEO's $8.9 Million Sale
Molycorp's top executive mined into the company's recent high and cashed in some shares on a selling spree.
On June 15 and 16, President and Chief Executive Mark A. Smith sold 174,915 Molycorp (ticker: MCP) shares for $8.9 million, or $51 each.
This is Smith's third sale of the year of shares of the miner of rare earths. On Feb. 16, he sold 72,700 shares for $3.6 million, an average of $50 each, and followed up on March 16 by selling 11,600 shares for $579,800, also an average of $50 each.Recently:
Following this transaction, Smith continues to own 774,318 shares directly and 153,433 shares indirectly through his spouse. His direct holdings represent less than 1% of Molycorp's outstanding shares.
Smith has been CEO since 2008 and president since 2010.
Molycorp did not respond to a phone call seeking comment on the transaction.
Ben Silverman, director of research for InsiderScore.com, says, "From a shareholder's perspective, I kind of wince. That said, the company has been public for less than a year and now sells at [a gain of] 300%."
Shares of Molycorp reached a high of $79.16 on May 3, but have backed off since then, closing at $52.80 on Monday.
"If an analyst has an $87 price target and these guys are selling at $50, there's a big disparity between what analysts are forecasting and where insiders are selling. So, somebody's wrong," he says....MORE
J.P. Morgan Raises Estimates, Price Target on Molycorp; Piper Raises to Overweight (MCP)
Molycorp Final Prospectus and Some Thoughts on the Insiders Selling (MCP)
