Friday, August 12, 2011

And That's a Wrap: "Molycorp shares soar on earnings and Hitachi deal" (MCP)

The stock is at $59.91, up $5.77(10.6%) after trading as high as $63.50.
Here's the chronology of the trade:

Rare Earths: Molycorp Registers Some Stock (and why did Morgan Stanley pick up 8,439,008 shares?) MCP
 The stock is up $2.97 at $49.30.
The 200 day at $51.39 didn't provide any support on the way down and shouldn't have much influence on the way up. The overarching concern is the general market, currently up 2.21% on the S&P, at 1144.15.
The company reports earnings on Thursday.
A couple offering filings from the SEC...

...On the other side of the ledger we have a 13G filing from Morgan Stanley Investment Management
Here's the August 8 initial filing for the July 29, 2011 event.
And here we have the complete text file.

Thank you EDGAR.
Relative Strength: Molycorp (MCP)
The one long we mentioned this week is holding its own, down  a dime, with the DJIA down 440 and the S&P also down 3.92%....
Molycorp: Today's Earnings Don't Really Matter (MCP)
The stock is up another $1.90 to $53.45...
Molycorp Beats; Raises; Decries Shortsellers as Spawn of Satan (MCP)
[a close reading of the press release reveals there is no use of the term 'Spawn of Satan' -ed]

Our earlier post had consensus at $0.40 a share on revenue of $98.59 million. I've also seen 42 cents as the average but who the heck cares? That's why we titled that post "Molycorp: Today's Earnings Don't Really Matter (MCP)". We'll have more in a bit.

After closing up $2.59 at $54.14 the stock is up another $3.79 (7.00%) after-hours. That seems a bit exuberant....
The calls have tripled in a down market. There was some volatility however...
Here's the rest of the story, from Reuters
Shares in Molycorp (MCP.N) jumped as much as 17 percent early on Friday, after the rare earth producer's quarterly earnings beat expectations and one of its business partners announced a new supply agreement.
Hitachi Metals Ltd (5486.T) said in a release that it had entered into a master supply agreement with Molycorp to secure access to the raw materials for its neodymium magnets.

But the Japanese company backed away from a previously announced joint venture with Molycorp to produce alloys for neodymium magnets. Instead, Hitachi Metals said it is considering its own U.S. manufacturing project....MORE

Here's the press release on the re-worked Hitachi deal:

Molycorp Announces Major Rare Earth Supply Agreement with Hitachi Metals