In late pre-market action the stock is down another $3.10 (7.78%) at $36.75.
We heard from the two bulge bracket firms on Tuesday.*
Here's another member of MCP's IPO selling group.
From Street Insider:
Also at Street Insider:
Analysts at Dahlman Rose recommended investors take advantage of recent volatility in shares of Molycorp (NYSE: MCP) to buy the stock. Molycorp shares plunged nearly 22 percent Tuesday following a JPMorgan downgrade.
The firm said it had been expecting the decline in rare earth prices which is now happening, however Dahlman said "despite the fall in rare earth prices, we continue to see substantial margins and earnings power for the company, which should support a higher share price."
Dahlman Rose attributed the recent slide in rare earth prices to the following: "destocking by traders, slower economic growth, and some substitution." The firm notes the market is "currently pricing in a 75 percent decline for cerium and lanthanum, which make up more than half of the forecast revenue the company should generate when production commences."
Dahlman Rose reiterates a Buy rating and $120
With shares of Molycorp rebounding about 1.9 percent to $42.24 this morning, the firm's price target represents potential upside of nearly 185 percent....
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