Molycorp: Why It's Extremely Undervalued & Best of Breed in Rare Earth Miners

[muttonbuster]

Oh Sweet Jesus, it's that goofy looking guy from Seeking Alpo!

[simplelife008]

lol fatass

[MsH1h1h1h1]

at the time of this video, MCP stock price was 15 dollars. now it is at 20 dollars. so this is all bullshit. MCP had a bubble. how many people lost money?

[WallStForMainSt]

@MsH1h1h1h1- So all you look at is stock price to determine value of a company? Do you know how to do valuations and run numbers? Molycorp's stock did get way ahead of itself in late 2012 and in 2011 but the earnings will be there in late 2012 and in 2013 to guarantee a much higher stock price! Many credible analysts are still projecting a conservative $4/share EPS for 2013 for MCP with low REE prices. Also, Wall St STILL has no clue MCP is WAY MORE than just a mining company!

[WallStForMainSt]

@MsH1h1h1h1- People don't have to buy and hold forever on stocks. Your comment indicates, you know very little about how the stock market really works. Run the valuation numbers on Molycorp and look at potential top and bottom line growth for the next 18-24 months. The projections are as good as any company its size listed on the NYSE. Management only needs to execute the plan now. The growth strategy is there! The stock will be back over $80/share again probably sometime in 2013

[cfini72]

I know you have seen what's going on in China and the WTO???

peace

[WallStForMainSt]

@cfini72- China is winning this battle. Large American and Japanese technology firms are moving even more of their factories over to China so they get easier and cheaper access to REEs. The REE market is not a free market and will not be one until at least 2016 when there is much more supply available from different sources globally and there are more people globally trained how to separate, process, refine and innovate with the REEs.

[zcarenow]

Jason, can you explain the REE process for newbies. How they take the deposits and process it? The overall process of this sector and critical/heavy elements . I think alot of people are trying to understand how this all works. Thanks.

[WallStForMainSt]

@zcarenow- Yes. Mining REEs is actually the easiest part of the entire operation. Proper metallurgy and separation of the ore body without screwing up the REE concentrate before they are turned into REE metals and then REE alloys and then turned into permanent Neodymium Iron Boron Magnets is all very difficult. Batches of supply can easily be ruined all along the way up the refining process before it ever becomes a magnet. That's why I think a company like Neo Material Technologies is good too

[zcarenow]

Jason, What other sectors are in its infancy like REE sector. I missed out on Quest Rare Metals when it was like .02 cents 2 yrs ago.

[WallStForMainSt]

@zcarenow- Graphite sector and manganese 

[zcarenow]

What is your opinion on UCore and Great Western Mineral

[existangst]

What about Lynas? What can you tell us them? You know they are building a Rare Earths Processing Plant in Malaysia coming on stream soon?

[tranceaddictandy]

Agree 100%

[gurlsingerfan]

UPDATE: You get credit for a WIN chief, from 14 bucks to a high of 60 bucks in barely over a quarter, and now trading in the 40's....good call as of Feb 21 2011, I hope you loaded up on it! :-)

[WallStForMainSt]

@gurlsingerfan- Many thanks! Looking back, it was a great call. I hope to continue to make great calls! I put a lot of hard work into my research.

[homegrown96]

If this rare earth is so great and the price is cheap.how many jobs will be created by this resourse..If China owned 90% of it they would be the ones to sellit,.Im not investing into China ,hell they provide everything this Country uses..What Tha?

[WallStForMainSt]

@homegrown96- The US needs to export things to China other than paper US Treasuries to help balance out our trade deficit. What is currently happening now in terms of US/China trade is 100% unsustainable. The US can build REE processing facilities here instead of relying on the Chinese for everything REE. By you investing in US REE companies, you would be helping the US. Does that make sense to you? The US needs more productive jobs back in the country. We need to make stuff and innovate.

[Tommyj1995]

sorry to bother u Mr Wall but what is rare earth miners and what do they do... whats all this about investing in something... please help me i am interested but it would be nicer if i could read ur reply... thanks

[johny260]

well, didn't you call it.  Damn

[WallStForMainSt]

@johny260- Yes I did Johny. I've been studying the Rare Earths market for months and I put my money where my mouth is and bought MCP shares around $14. If you are interested, I co-authored a very comprehensive special report on everything there is to know about the Rare Earths w/ commodities guru Kevin Kerr of Kerr Trading. The report is the Dragon Metals report and is endorsed by Jim Puplava of Financial Sense Newshour as a "must read" for investors.

[manhattan660]

@WallStForMainSt - Hey jason, I have been trading some rare earth element stocks for a couple of weeks now, and made some good money off them. My question for you is do you think at 50.00 where MCP is at right now, do you considered it a buy still or do you think its overvalued.

[manhattan660]

@WallStForMainSt - Hey Jason, I have been trading some rare earth element stocks for a couple of weeks now, and made some good money off them. My question for you is do you think at 50.00 where MCP is at right now, do you considered it a buy still or do you think its overvalued.

[WallStForMainSt]

@manhattan660- MCP is currently fairly valued now. It is neither overvalued nor undervalued. Wall St institutions now own over 92% of all of the MCP shares. That means lots of Wall St analysts are now covering the stock looking over it for valuation. All of the easy money in the stock is gone. I still think the stock will be over $100 in 2-3 yrs based on the fundamentals in the REE market and all of the things going on that are positive with the individual company.

[WallStForMainSt]

@manhattan660- There's still value in the REE sector, but you gotta spend more time looking and researching. I think Lynas, Great Western Minerals, Stans Energy and Ucore Rare Metals are all pretty undervalued. I just did a video blog on Great Western Minerals. It was lagging for a long time until the last 2 weeks. Massive short squeeze is occurring in that stock now on top of the other positives in the REE market!

[HermandLo]

lynas has been signing all the contracts...too bad for mcp

[WallStForMainSt]

@HermandLo- MCP just announced they are going to build a new mill that will make it easier for them to go from 20,000/ton a yr production all the way to 40,000 ton/yr production. No worries with Molycorp and Lynas. Those are the top 2. It's like arguing between Exxon Mobil and Chevron...

[mrees999]

What do you think of Dacha ? Stockpiling and warehousing REE now?

[WallStForMainSt]

@mrees999- Dacha has an interesting business model. The stock is still undervalued after lots of dilution to survive the crash of 2008. There is no mining or geopolitical risk but leverage is limited. There is a lot of management risk though as management tries to market time the REE market and move in and out of distinct metals positions in the REEs. I'd say it's a good stock to speculate on as part of a diversified REE portfolio.

[mistapikkles]

What do you think of REE?

[WallStForMainSt]

@mistapikkles- They are a good Rare Earth junior miner. I don't think they are any better than Avalon, Great Western Minerals, Ucore, Quest, Lynas or Arafura. Molycorp is the clear bluechip stock in this sector. I think MCP will be a control company with 14% of total REE production when they are at 20,000 tons/yr of produciton just like POT and CCJ have control of the Potash and Uranium markets...

[WallStForMainSt]

Jason,

Great video blog! I really think Molycorp will be a triple digit stock in the future. There is not many rare earth company in the stock and market and they are also producing too!

[dodgerj88]

@WallStForMainSt- Thanks Mo. Molycorp's got the goods. That's the most important thing. In a few yrs, they will have fantastic production. At least they are producing now! I cannot believe all of the haters on this stock! Do they even understand how to invest in natural resources and commodity stocks? Even Rick Rule would like this stock. They are a First Mover!