(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.)
It only took two days for Molycorp (MCP) to officially roll out the pricing of its secondary share offering and convertible notes. MCP indicated these deals were “subject to market conditions”, and market conditions may have forced the issue to the tune of a 13% slide.
This overhang that I feared from these events comes on top of a 12% on a downside resolution to the pressure that was building in the stock. I am anticipating this news will wipe away some of the overhang as quickly as it arrived, so I will unwind some of my hedge. I added some stock to my position yesterday (trades reported on twitter with hashtag #120trade).
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The selling in MCP in June is equivalent in depth (but not intensity) to the other two strong bouts of selling MCP has experienced in its short life as a publicly traded company on the major exchanges. From all-time intra-day highs to yesterday, the stock has lost 35%. MCP lost 36% in three weeks in January of this year and lost 34% from top to bottom from October to November of last year, also lasting three weeks. I am looking for history to repeat itself and mark the end of the selling here as well.
*Chart created using TeleChart
{snip}
Be careful out there!
(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.)
Full disclosure: long MCP shares and puts
Doctor,
A request: tell me how to get your market related pieces such as those on t2108 earlier than I am – todays email from you is time stamped 11:11 and I see it was written at 6 am. What would be even better is to see something at 5-8 pm the day you are writing about.
Regards.
Feedburner does not allow me to adjust the timing of those emails. Or at least I have not yet found the setting! There are two main ways you can get these posts in a more timely fashion: 1) if you are on twitter, subscribe to my feed http://www.twitter.com/DrDuru. I always post a link to my posts there immediately after publishing. 2) Subscribe to my feed through a blog reader. You should see it show up within a few hours there (RSS feed: http://feeds.feedburner.com/onetwentytwo). If there is any particular topic you want to follow, like T2108, you can bookmark the tag and just check it periodically. If I have anything new to say on T2108, I almost always get it done by evening and certainly well before market open: http://drduru.com/onetwentytwo/tag/t2108/
I hope that helps and thanks for following!