Each individual has their own unique level of risk tolerance. The bottom line is the stock market is just another form of gambling. When you make a purchase of any security on any exchange, there is a probability that you could lose your entire investment. So the first question any investor should ask, is how much can I invest with the possibility of losing it all and not have it adversely affect the financial well being of myself and those that I love. If the answer is -0-, you should not invest in the stock market.
If you do have risk capital available, and Molycorp stock is a company that you are interested purchasing some of their stock , I suggest that you call their investment relations department and request a copy of their last annual report. Go to the section of the report entitled "risk factors". This should provide you with an excellent snapshot of the who what where why of the company the industry, and governmental involvement/interest in the markets that the company operates. I believe this will help you decide just how much if any of your dollars you want to put into play towards the purchase of this or any other stock you might have under consideration.
I know I haven't addressed your concern about insider stock transactions. Personally, I pay no attention to it, because there are millions of reasons why officers and directors buy and sell that have absolutely no correlation with the business taken as a whole.
Actually my name is Carol. Ron is my other half. I grew up watching "Leave it to Beaver" in a Republican family. Been conflicted until lately. Even if I thought I'd make a boatload of money I can't make myself buy into something that takes money from working people and dumps it on unfortunate billionaires. I guess I got my answer about where the money went and where it came from. Need to go shopping now to prop up the economy.
Carol maybe I can make this easier for you to understand. When a company is first formed, someone has to put up the money to fund the business so they can buy equipment, lease space, etc and they get stock in return. At some point, those people want to get their investment back. If that same company goes public, those people now have stock with a value that they can sell on the open market. So some of the insider selling you are seeing is just the people who put Molycorp in business in the first place (and likely worked their tails off building the business also) getting some of their money back.