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

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 higher today making it today's featured metals & mining winner. The industry as a whole closed the day down 2%. By the end of trading, Molycorp rose 8 cents (1.4%) to $5.89 on average volume. Throughout the day, 7.6 million shares of Molycorp exchanged hands as compared to its average daily volume of 9.6 million shares. The stock ranged in a price between $5.75-$6.20 after having opened the day at $5.84 as compared to the previous trading day's close of $5.81. Other companies within the Metals & Mining industry that increased today were: Sutor Technology Group ( SUTR), up 8.6%, Revett Minerals ( RVM), up 6.6%, Quaterra Resources ( QMM), up 6.3%, and Pacific Booker Minerals ( PBM), up 6.2%.
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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 $847.1 million and is part of the basic materials sector. Shares are down 35% year to date as of the close of trading on Friday. Currently there is one analyst that rates Molycorp a buy, no analysts rate it a sell, and six 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, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

On the negative front, Northern Dynasty Minerals ( NAK), down 13.6%, Hecla Mining Company ( HL), down 12.3%, Golden Minerals ( AUMN), down 12%, and Jaguar Mining ( JAG), down 10%, were all laggards within the metals & mining industry with ArcelorMittal ( MT) being today's metals & mining industry laggard.

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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