MCP Molycorp: Long Term Holding

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	David Sachdev
	Washington, DC User since Dec 2009	38
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Long Term Holding

This is a buy into the rare earth companies. They have been all the talk amogst daytraders for the last 3 weeks or so, but I'm making a purchase for the long term because, well....rare earths! Have I bought at the best price...I don't know. Likely not since they are up 7% today. But I've been meaning to get into this st0ock for a while, so I've dipped my toe in today.

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What People Are Saying...

David Sachdev said at 12/6/10 1:50 PM Price action was $30.83 3.03 (+10.9%)

Dec 7 (Reuters) - Japan's Sumitomo Corp <8053.T> is planning to acquire a stake in U.S.-based rare-earth metals producer Molycorp Inc <MCP.N> to stabilize domestic supplies as Chinese imports decline, the Nikkei business daily said.
Sumitomo plans to import cerium, lanthanum and neodymium, among other rare earths from Molycorp, the Nikkei reported.
The paper added that an agreement may be reached this week, and shipments are expected to begin in spring and run through 2012.
Sumitomo, which is planning to invest about 10 billion yen ($121.2 million) in Molycorp's mine expansion plans, may apply for assistance through the Japan Oil, Gas and Metals National Corp.
The possibility of the investment comes at a time when, according to finance ministry data, Japanese imports of rare earths slumped in October from the month before as China's de-facto ban on shipments of the minerals that had been in place since late September took its toll. [ID:nTOE6AS010]
Japanese companies have been complaining of restrictions on shipments of the metals, vital for making auto parts and high-tech products, by Chinese customs officials following a spat over disputed islands in the East China Sea.
Sumitomo will import nearly 2,000 tons of rare earths next year, including both new output and inventoried stock.
The metal-trading unit of Mitsubishi <8058.T> has signed a one-year contract to import a portion of Molycorp's inventory, the paper added.
($1=82.52 Yen)

David Sachdev said at 12/13/10 11:36 AM Price action was $33.67 2.39 (+7.6%)

(MCP) 32.96 +1.56 : Co announced that it has secured the last of several environmental permits necessary to begin construction of its new, rare earth manufacturing facility at Mountain Pass, California. "Securing the permits is a major milestone in Molycorp's $531 mln project to construct a complete rare earth mine-to-magnets manufacturing supply chain in the U.S." The project is expected to support an average of 700 jobs per day over the 18-month construction period, with an additional 200-300 permanent jobs when the new facility runs at full capacity, scheduled to occur by the end of 2012.

Mike Barkett said at 12/13/10 12:37 PM Price action was $35.33 4.05 (+12.9%)

good stuff -- being more aggressive will help your score though

David Sachdev said at 12/21/10 11:36 AM Price action was $41.24 1.99 (+5.1%)

Molycorp, Inc i up nearly 4% this morning after announcing plans to launch a joint venture later next year with Japan-based Hitachie Metals Ltd to develop rare-earth alloys and magnets in the U.S.

Josh Warner-Burke said at 12/21/10 11:45 AM Price action was $41.40 2.15 (+5.5%)

Have we missed out on the explosive upside in this one, David, in your opinion?

David Sachdev said at 12/21/10 11:46 AM Price action was $41.40 2.15 (+5.5%)

To be honest, I'm not sure...I never expected this stock to move quite this quickly. And well, it's market cap is high. Once it starts to settle a bit, I'm going to have to think about a stop-loss. At the moment, I'm trying to decide if I should commit more money.

David Sachdev said at 12/23/10 2:26 PM Price action was $45.20 1.86 (+4.3%)

New high today....I was a bit worried that I was going to loose on the additional shares I picked up the other day. Glad to see this moving up. The 3.77 B market cap does have me a bit worried, but thinking that momentum of the sector will keep it moving up for a while. But will be looking at various protection (Stop Losses, Puts, etc on this investment)

Ian Hall agreed at 12/24/10 2:07 PM Price action was $45.35 2.01 (+4.6%)

David Sachdev said at 12/27/10 12:27 PM Price action was $49.84 4.49 (+9.9%)

This stock looks poised to break the $50/share mark. I haven't put in a stop-loss yet, and I realize I have to give strong movers some wiggle room, but may have to put in a stop-loss for at least some shares.

Also have to factor in tax consequences on these shares if some were to sell in 2010.

David Sachdev said at 12/27/10 12:29 PM Price action was $49.84 4.49 (+9.9%)

REE is another stock in the sector that I need to investigate. Moving in lockstep today with MCP.

Mike Barkett said at 12/27/10 2:45 PM Price action was $49.62 4.27 (+9.4%)

this is a friggin gold mine... err, whatever

David Sachdev said at 12/28/10 9:17 AM Price action was $49.44 0.00 (0.0%)

I put about $1000 into REE yesterday, but was worried that I had already missed that run. This morning's bid/ask says otherwise!

Josh Warner-Burke said at 12/28/10 10:33 AM Price action was $53.42 3.98 (+8.1%)

Whoa it just keeps going.

David Sachdev said at 1/3/11 8:45 AM Price action was $49.90 0.00 (0.0%)

Looking good for a move higher today.

David Sachdev said at 1/3/11 11:18 AM Price action was $56.98 7.08 (+14.2%)

Dahlman Rose raises price target to $85 from $49.

Loving the rare earths - holding both MCP and REE. I'm a bit worried that when they fall, they will fall hard, and will have to find good stop-losses in here. I haven't taken any profits yet, but looks like I'm set up for a double in just under 45 days.

Have the opportunity this week to keep a close eye on the market, so just watching it climb.

Mike Barkett said at 1/3/11 12:54 PM Price action was $57.88 7.98 (+16.0%)

Even with the ARNA pick, I expect your score to start rising. Your recent picks are starting to make up for the early ones.

David Sachdev said at 1/3/11 1:04 PM Price action was $57.63 7.73 (+15.5%)

I've been very happy with the score my brokerages keep for me. I've committed good percentages to my winners the last few months, and am working hard on keeping trailing stops on my larger sums.

Ian Hall said at 1/3/11 3:43 PM Price action was $56.61 6.71 (+13.4%)

What a beast! I've been considering a copycat pick since the first pop and have put it off time and again...what a mistake! With the money you make on your real-life investment, you'll be able to afford to hire the band Rare Earth to play a celebratory party! :-)

David Sachdev said at 1/4/11 12:52 AM Price action was $57.50 7.60 (+15.2%)

Molycorp Inc., owner of the world?s largest rare-earth deposit outside of China, may double its planned production to help meet global demand after China cut export quotas.

Already back near highs in after hours

David Sachdev said at 1/4/11 6:55 AM Price action was $57.50 7.60 (+15.2%)

Premature has them up even higher this a.m. Seeking Alpha has an interesting article that also mentions that the IPO shares free up from under lockout in just 3 weeks. Surely some of those investors are going to take profits. I think this week is my week to do the same. But sitting on hands for now.

David Sachdev said at 1/4/11 6:58 AM Price action was $57.50 7.60 (+15.2%)

%s/Premature/Pre-market/s

Apple auto-correct + too early = fail!

David Sachdev said at 1/4/11 10:20 AM Price action was $61.50 4.00 (+7.0%)

Sold my REE, and looking at when to close out MCP positions.

Ginger Gal said at 1/4/11 2:46 PM Price action was $60.76 3.26 (+5.7%)

An amazing high flyer stock.

David Sachdev said at 1/4/11 3:02 PM Price action was $61.17 3.67 (+6.4%)

BTW, still like the concept of Rare Earths for a longer term hold, but maybe the sector will come back to earth after January options expire.

Given the short interest here though, there may be some trades leading up to that time frame.

David Sachdev said at 1/6/11 1:15 PM Price action was $54.51 -6.19 (-10.2%)

Did pretty good on my exit timing. Left a few hundred dollars on the table by getting out just under $60. Picked up a few Feb 2010 65 PUTs on this now with the thought that having IPO shares free up just before January Options expire could being a firestorm on the stock....

David Sachdev said at 1/14/11 1:44 PM Price action was $45.17 -3.70 (-7.6%)

Holding February Puts in REE and MCP. Let's see if I can ride these stocks for a return trip back down!

Toyota Motor Corp. is striving to develop a new type of electric motor to escape a simmering trade conflict involving China's grip on a rare mineral.

The Japanese auto maker believes it is near a breakthrough in developing electric motors for hybrid cars that eliminates the use of rare earth metals, whose prices have risen sharply in the past year as China restricted supply. The minerals are found in the magnets used in the motors.

All electric motors rely on magnets to make them work. The new motor Toyota is working on is based on the very common and inexpensive ...