This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Molycorp, Rare Element: Rare-Earth Winners, Losers

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

NEW YORK ( TheStreet) -- Shares of rare-earth, strategic stocks were trading in mixed territory as the broader indices strengthened amid a good start to the earnings season led by better-than-expected fourth-quarter report from Alcoa. (AA - Get Report)

Rare Element Resources (REE) is rising 2% Tuesday to $15.75. On Monday the company reported what it said it believed to be promising data derived from a drilling program at its Bear Lodge property northeastern Wyoming. "The assay results continue to demonstrate the continuity of the mineralized bodies at the Bull Hill SW resource area," the company's vice president of exploration Jim Clark said in a prepared statement. "Results from the 2010 drill program should allow us to expand the limits of the deposit and upgrade the resource category in our next .... compliant resource estimate." Clark expects that the next estimate will be completed early in the second quarter of 2011.

Molycorp (MCP) was falling 1.1% to $54.01. Forbes reports that private equity firm Resource Capital has not made any returns yet from its $110 million investment in Molycorp., though the investment continues to look compelling given that the it's now worth about $1.5 billion based on the Molycorp's recent stock price.

Molycorp recently announced that it has secured the last of several environmental permits necessary to begin construction of a new rare-earth manufacturing facility at Mountain Pass, Calif. The company said it was a major milestone for Molycorp's $531 million project to construct a complete rare-earth mine-to-magnets manufacturing supply chain in the U.S.

General Moly (GMO) is jumping 7.6% to $6.40. The stock has climbed by more than 9% since late December, when it was announced that China would be increasing caps on exports of rare-earth metals.

Lynas (LYSCF.PK) is falling 5.2% to $2.01. In its most recent update on the project, Lynas said that its Concentration Plant at Mount Weld, Western Australia is due to begin operating in February, 2011, despite some pre-launch delays that the company had been addressing, and that its Lynas Advanced Materials Plant (LAMP) in Malaysia remains on schedule for its first production of rare-earth materials in the third quarter of 2011.

Avalon Rare Metals (AVL) was higher by 0.6% to $6.756 in Tuesday trading. Last week the stock took a dip after it was lowered to hold from buy by Laurentian Bank.

Although many of these companies have yet to begin producing rare-earth elements, the belief that investors have in the potential of these companies to eventually cash in on the value of these materials when applied to technologies used in oil refining, batteries, TVs and military applications, magnets and more is palpable.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AVL $0.00 0.00%
MCP $0.36 0.00%
AA $11.15 -1.41%
GMO $0.36 -2.50%
SUN $36.29 -0.11%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs