I think the comments you made below still make incredible sense:
"I purchased based on the fact that the company is undervalued based on a price to revenue basis in the business... the industry's fundamentals are excellent, the demographics are excellent, the insurance environment is excellent, GABELLI's huge purchases, Oscar Shafer's ownership, etc...their revenues are growing .."
Let me see if I understand this correctly. Did Bios new auditor make them write off every bad account in this quarter instead of stretching it out over several quarters? If so, does that means when they recover many of these accounts going forward, that will just add to the bottom line. It seems they closed and wrote off all their unprofitable locations and took the full charge this quarter on their business acquisitions and they are getting a new CFO. Aren’t they shutting down all the unprofitable sectors and focusing on their billion dollar rapid growth infusion business? If my understanding is correct, then won’t BIOS be lean and mean going forward and could march pretty rapidly back to $7 to $8 just on these changes alone? Next quarter, will the rapidly growing infusion business will be a cash cow driving this stock into the teens and then a buyout much higher? Is this kind of the thinking of those who are buying at these levels. I am long and holding but would appreciate those with a better understanding of the conference call giving their opinion on a likely scenario going forward. Is this what the big guys like Gabelli and others are seeing as they increase their investment?
Yesterday could have been a buying opportunity... obviously a lot of people today bought back. I wonder if Bios could be setting up for a short squeeze soon. The long term growth opportunity hasn't changed but the board has some new members, and I wonder if the power investors are coming in and helping Bios get on the right path to prosperity?
Yeah, sell off makes little sense with BIOS growth potential, Gabelli's investment and a book value of $4.00/share.
Do you know how much Gabelli owns? I wonder his view of the earnings. I did not expect it to show signs of a turnaround this quarter. I still believe we will do very well over the next few quarters especially adding to our position at this price.
I bought a few more shares on the dip... Some very smart people have invested in this company; they are in a health care area playing to our aging population and seems like it is a value play with great upside in the next quarter or two. Anyone else holding or buying down here for the long term value, possibility for a buyout or their growth?
Rare earth... rare is the key... simply buy a few thousand shares and hold it for a year. A ten bagger in MCP seems very reasonable. Of course it could go down but things are improving for MCP, so it seems the likely scenario for this stock is back up near $10 where it seemed to base for most of it's life with that rare exception to $72 and now down under a buck.
Thanks, I am planning on adding to MCP on significant pullbacks. It seems like they have a monopoly on a commodity needed by our military, auto makers, and technology. I like owning that kind of commodity at these levels, and I really over the next few years it will be above $20 or higher again.
Don't play it. Simply buy it under a dollar and hold it for a year. I agree with the recent post that small investors cannot "play" a stock like MCP. I remember when this company was a few bucks and recommended as an investment in rare earths. It went to $50 or so... My strategy is to have a small percentage of my portfolio where I can afford to invest in a unique opportunity like MCP and simply hold it for a few years. Short term it will probably be all over the place, but with geopolitical events and the very real need for rare earth minerals in so many areas, it seems like a good company to buy when it is under $1.00 as a HUGE risk/reward opportunity and then forget about it. The little guy can buy a few thousand shares... In a year or two one potentially could have lost $2000 or be sitting on $100,000. jmho jf
If one looks at a 5 year chart, MCP has spent most of it's time between $10 and $70. There are good reasons for that as reflected in numerous posts on this board. For MCP to be under $10 is an anomaly. This company is the only one of it's kind in this company producing a commodity NEEDED by our military, electronics and automotive among other things. MCP should never have gone below ten dollars, and I think will move quickly back above ten at a minimum. jmho
The stock has a consensus analyst price target of $1.12 and a 52-week trading range of $0.28 to $5.62. Molycorp hit a peak of roughly $75 in 2011... WSJ quote today on MCP
OK, I did take a position in RIG at these levels. It is so cheap and if you sold all their equipment, its book value is over $40/share. However, I wonder how RIG will fare if oil prices stay low for about 12 months? Is the high teens the bottom for RIG or could the bottom fall out if oil prices do not rebound for a year?
I agree. There are some very wise money managers according to Barrons that are investing heavily in AMD at these levels. The Barron's article seemed to indicate AMD could almost double in the short run which would put us around $5 and then up from there. They have changed their chip mix and have a lot of new products. They are in Microsoft and Sony's gaming platforms and possibly taking share from Nvidia and China may be interested in buying them... lots of good things going on.
And Barron's magazine made a good case for AMD to move up at least 70% or more from these levels. That would put AMD in the $5.00 range. I missed MU when it was at $7. Everyone thought it ;s product was not in demand and then suddenly they were very in demand and the stock more than triples. AMD has always been a good company and seems way too cheap at these levels.
It is probably not worth $75/share today, but certainly worth far more than these low prices. We are talking RARE earth here... something the future needs and MCP is the ONLY source in the United States. It is valuable property.
If $50/share seems like a stretch consider that MCP is the only rare earth mine in the United States and rare earth is needed by our military, not to mention auto makers and all the high tech stuff we see coming our way.