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Molycorp, Inc. Message Board

  • doowop59 doowop59 Dec 12, 2012 10:30 PM Flag

    Who is betting on what....

    Shorts:
    Waiting for the other shoe to drop after Smith's ouster that would include delayed MP startup and SEC action regarding disclosure problem. Both reasons for his pink slip theoretically. More info to come.

    Longs:
    Good riddance Smith. Now we can move forward.
    Start up at MP as advertised before year end by Smith.
    SEC investigation a non-event.
    Huge short covering before year end as new tax rates take effect Jan. 1st.

    Any other ideas folks ?

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    • Another uncertainty is at what price for the various rare earths can MCP make a profit? Being vertically integrated helps.

    • Read the article under the Yahoo links:
      Molycorp CEO Exits Six Months After Neo Material Deal

      It has the following bits from analysts:

      “We feel that Mark had lost credibility with a number of constituents, shareholders, potential investors and analysts,” said Michael Gambardella, a New York-based analyst at JPMorgan Chase & Co.

      Molycorp disclosed the probe by the U.S. Securities and Exchange Commission in a filing on Nov. 9, the day after reporting its third-quarter earnings and hosting a conference call to discuss results with investors, a decision that eroded investors’ trust in his management, Gambardella said.

      ...

      “Smith has excellent credentials from a technical perspective but his ability to deal with the financials of an emerging company appeared to overwhelm him at times,” Alan Schlesinger, owner of Alchemy Management LLC

      ...

      Jim Sims, a Molycorp spokesman, said by telephone ... Molycorp asked Smith to leave, ... The board decided to make a management change because the profile of the company is rapidly changing,”

      Smith’s departure wasn’t related to an investigation by the U.S. Securities and Exchange Commission and Molycorp is on schedule to meet its target of producing at an annual rate of 19,050 metric tons of rare-earth oxides in the current quarter, Sims said.

    • We all know and expect that at some point in the future, Molycorp will purchase a Heavy Ree mine to further enhance Molycorp's product capability. I’m thinking outside the box here but it’s something to keep an eye on.

      Mr. Smith left Molycorp with the technical knowledge of Project Phoenix operations and the skills to bring a developing company into production. He would also know how to develop and prepare a company to merge with Molycorp's Project Phoenix. There may be more to his leaving Molycorp than meets the eye. If by chance he goes to work for a company such as Avalon for example, I think you could realistically view that company as the next potential takeover candidate for Molycorp in the future. I find it hard to believe that he will not be involved with Molycorp in another way. Thoughts!

 
MCP
2.12-0.02(-0.93%)Jul 28 4:01 PMEDT

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