Molycorp Inc. (MCP): Today's Featured Metals & Mining Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Molycorp ( MCP) pushed the Metals & Mining industry lower today making it today's featured Metals & Mining laggard. The industry as a whole closed the day up 1.3%. By the end of trading, Molycorp fell 15 cents (-1.4%) to $10.90 on light volume. Throughout the day, 3.3 million shares of Molycorp exchanged hands as compared to its average daily volume of eight million shares. The stock ranged in price between $10.69-$11.21 after having opened the day at $11.06 as compared to the previous trading day's close of $11.05. Other companies within the Metals & Mining industry that declined today were: Crosshair Energy ( CXZ), down 4.8%, China Gerui Advanced Materials Group ( CHOP), down 3.8%, Avalon Rare Metals ( AVL), down 3.4%, and Platinum Group Metal ( PLG), down 2.9%.
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Molycorp, Inc., a development stage company, engages in the production and sale of rare earth oxides in the western hemisphere. Molycorp has a market cap of $1.28 billion and is part of the basic materials sector. Shares are down 53.9% year to date as of the close of trading on Friday. Currently there are two analysts that rate Molycorp a buy, one analyst rates it a sell, and four rate it a hold.

TheStreet Ratings rates Molycorp as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

On the positive front, L & L Energy ( LLEN), up 16.9%, Prospect Global Resources ( PGRX), up 14.6%, Peabody Energy Corporation ( BTU), up 11.8%, and James River Coal Company ( JRCC), up 6.2%, were all gainers within the metals & mining industry with Barrick Gold Corporation ( ABX) being today's featured metals & mining industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the metals & mining industry could consider SPDR S&P Metals & Mining ETF ( XME) while those bearish on the metals & mining industry could consider PowerShares DB Base Metals Sht ETN ( BOS).

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