Molycorp Inc (NYSE:MCP) Down 25% During Trading Last Month


Dallas, Texas 10/25/2013 (Financialstrend) – Molycorp Inc (NYSE:MCP) last week announced that it had priced its secondary public offering of 45 million stock at $5 per share. The offer was expected to close on October 21. At close of business on October 24, the stock was trading at $5.38 per share.  This translates to a 6% discount at today’s prices. The company was expecting to accumulate close to $225 million in cash through this exercise. It had shared in its prospectus that it will use the proceeds to quicken its construction activity at Mountain Pass, California facility.  Post the announcement, the stock shed close to 6% of its market valuation. It continued to shed valuation to end last week trading 2.54% in the red. This continued the poor run the stock has endured at the browsers over the past few quarters. In the last one month itself, it has gone down 25%. Investors who were invested into the stock one year back have seen their investments loose 50% of its value. In addition to lack of growth in market value, the investors in this stock have not seen any dividends being paid out over the past 12 months.

The company has a market cap of $902 million and has accumulated net loss of $500 million over the past one year. In the same period, it has managed to post sales of $623 million. At close of business on October 24, the stock had gained close to 2.67%, this being the first trading session the stock gained substantially over the past one month.

At current valuations the stock is priced 54% lesser than its 52 week high valuation. These price points represent a 14% increase over its 52 week low pricing. Trade analyst have set a price target of $7.73 million for this stock over the next few quarters.