Why Molycorp (MCP) Is Sinking After Hours

NEW YORK (TheStreet) -- Molycorp (MCP) is sinking in extended trading after quarterly net income and revenue came in below expectations.

After the bell, shares had taken off 4.8% to $5.

The rare earth mineral miner recorded a net loss of 28 cents a share, a loss a penny wider than analysts surveyed by Thomson Reuters had anticipated.

Revenue of $123.8 million was 7.8% lower than a year earlier and 17% lower quarter over quarter. Fourth-quarter product sales volume of 3,201 metric tons saw a 12% quarter-over-quarter decrease.

Analysts had forecast quarterly revenue of $150.63 million.

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TheStreet Ratings team rates MOLYCORP INC as a Sell with a ratings score of D. The team has this to say about their recommendation:

"We rate MOLYCORP INC (MCP) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself."

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