Other than new IPO stocks, never seen stocks trading below 5.00 do much of anything over the years, and those trading below 1.00 are merely easy profit centers for market experts, either writing out of the money 1.00 call options, and placing them in the hands of small investor fools...or purchasing as many in the money 1.00 puts as they can afford for the final ride to zero.
The odds that stocks trading under 1.00 can ever sustain prices above that point again (except through reverse splits) or resume bull markets are about 1 in 1000...and I'd rather take far better odds in something like financing a desert-born saudi arabian downhill skier to win the Winter Olympics lol
With MCP falling below 5.00, it is only a matter of months now before it is delisted, and my own guess is that will happen before Summer 2014 arrives. Yet somehow the small investor fools can't figure things out and bad enough they buy MCP stock, but you really have to wonder about the kinds of small investor fools crazy enough to buy even a single call option in these sub-5.00 rare earth sliders lol
For all those recently joined board members, please note that steind76 is none other than another reincarnation of insect_insight, a known basher/short of rare earth stocks, golds and silvers. He keeps predicting an MCP demise and bankruptcy, but for some reason his date keeps changing 3 months at a time. First he predicted it to be last spring, then last summer, then by this Xmas, and now I see that his new posts are making reference to the upcoming spring/summer: LOL. He went away over the summer when MCP was trending higher, but I now see that he is back with a vengeance. He writes beautifully. If you are annoyed, best thing to do is to simply put him on ignore. I don't have him on ignore, because I am actually entertained by his posts and keep sharing them with my friends, so we can laugh later. I am actually glad that he is back because I will have more to laugh at when he writes.
His basic premise specifically relating to MCP is that because the Chinese produce and deliver REEs at much lower costs and this trend will never end according to him, would mean a future MCP bankruptcy, since MCP cannot compete and will always be forced to produce and sell their own REEs at a loss, unless the trend changes, i.e. UNLESS the chinese decide to dramatically scale back on their REE exports like they did in 2010. He keeps mentioning how all North American REE companies will go bankrupt as a result of this. And you know what, that may happen...
What you need to ask yourself is, will MCP go bankrupt provided that they have spent 1.5+ billion dollars on a processing facility whose main purpose is to make production/processing costs lower than the chinese? Will they go bankrupt, provided that they hold the biggest and richest REE mine in North America and are integral to national security? Will they go bankrupt based on the current value of their existing assets? If you think the answer is yes, then you would be better of to sell or stay short, otherwise hold / accumulate.
Fortunately nowadays with the internet this kind of lying and fear-mongering can only fool the willfully uninformed.
Nowadays anybody can access chart histories and price histories and find all of the stocks that have gone from under 5 and also from under 1 to go much higher.
that means much fewer people will be misled by this kind of misinformation and scared into selling their shares.
it stands to reason that those who did their DD into low priced issues ignored by wall street and patiently held them until they rebounded and moved considerably higher have become very wealthy, much more wealthy than those who compete with the wall street machine by buying overpriced stocks with inflated PE's - the kind of stocks that hedge funds and institutions pump up to ridiculous levels and then dump like maniacs when the market crashes.
all investors should keep in mind that the way Wall Street is structured takes low priced stocks out of their hands and out of their control. That is why what steind76 calls "small investors" have a distinct advantage picking up low priced, distressed stocks on which they have done their dd and which they expect to rebound. That is also why you see stocks like AMZN and PCLN and GOOG and others get bid up higher and higher and higher, out of all proportion to their intrinsic value. That is where Wall Street money keeps going, into the same stocks. And it is out of those same stocks that Wall Street money will empty very quickly, when the crash comes. Wall Street money goes out a lot quicker than it goes in.
Sentiment: Strong Buy