{"id":5369,"date":"2011-06-08T16:23:46","date_gmt":"2011-06-08T20:23:46","guid":{"rendered":"http:\/\/drduru.com\/onetwentytwo\/?p=5369"},"modified":"2011-06-09T18:54:25","modified_gmt":"2011-06-09T22:54:25","slug":"molycorp-overhang","status":"publish","type":"post","link":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/","title":{"rendered":"Molycorp Share Offering and Financing Announcements Create An Overhang"},"content":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha. <a href=\"http:\/\/seekingalpha.com\/article\/273840-molycorp-share-offering-and-financing-announcements-create-an-overhang\">Click here to read the entire piece<\/a>.)<\/p>\n<p>First, Molycorp (MCP) looked <a href=\"http:\/\/seekingalpha.com\/article\/272838-molycorp-positioned-for-a-fresh-rally\">poised for a rally<\/a>. <\/p>\n<p>Soon after that, the technicals turned, <a href=\"http:\/\/drduru.com\/onetwentytwo\/2011\/06\/03\/molycorp-update\/\">indicating pressure was building<\/a> for a big move. I hedged, but I remained bullish.<\/p>\n<p>Last night, MCP made two financial announcements that promise to place a more sustained overhang on the stock. <a href=\"http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=236277&#038;p=irol-newsArticle&#038;ID=1571695&#038;highlight=\">Certain selling shareholders may sell up to 10M shares in a public offering<\/a>. In addition, <a href=\"http:\/\/phx.corporate-ir.net\/phoenix.zhtml?c=236277&#038;p=irol-newsArticle&#038;ID=1571696&#038;highlight=\">the company is selling $200 million principal amount of its Convertible Senior Notes due 2016 to qualified institutional investors<\/a>. The key conditional on each announcement is the boilerplate &#8220;subject to market conditions&#8221; which means the transactions will only execute at the &#8220;right price.&#8221; In the meantime, while the market is left guessing how low that selling price can go, selling pressure will undoubtedly build and suppress the stock price as that limit gets tested&#8230;absent some new positive catalysts. Also note that institutional investors will sometimes hedge purchases of convertibles by shorting common stock.<\/p>\n<p>{snip}<\/p>\n<p><center><br \/>\n<figure id=\"attachment_5372\" aria-describedby=\"caption-attachment-5372\" style=\"width: 515px\" class=\"wp-caption aligncenter\"><a href=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg\" alt=\"MCP&#039;s May lows are likely to get tested\" title=\"MCP&#039;s May lows are likely to get tested\" width=\"525\" height=\"466\" class=\"size-full wp-image-5372\" srcset=\"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg 525w, https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP-300x266.jpg 300w\" sizes=\"auto, (max-width: 525px) 100vw, 525px\" \/><\/a><figcaption id=\"caption-attachment-5372\" class=\"wp-caption-text\">MCP's May lows are likely to get tested<\/figcaption><\/figure><br \/>\n*<strong>Chart created using <a href=\"http:\/\/www.worden.com\/CURRENTAFPROMO.aspx?AFCODE=866\">TeleChart<\/a><\/strong><br \/>\n<\/center><br \/>\n<\/p>\n<p>Be careful out there!<\/p>\n<p>(This is an excerpt from an article I originally published on Seeking Alpha. <a href=\"http:\/\/seekingalpha.com\/article\/273840-molycorp-share-offering-and-financing-announcements-create-an-overhang\">Click here to read the entire piece<\/a>.)<\/p>\n<p>Full disclosure: long MCP shares and puts<\/p>\n","protected":false},"excerpt":{"rendered":"<p>(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) First, Molycorp (MCP) looked poised for a rally. Soon after that, the technicals turned, indicating pressure was building for a big move. I hedged, but I remained bullish. Last night, MCP made two financial announcements &#8230; <a title=\"Molycorp Share Offering and Financing Announcements Create An Overhang\" class=\"read-more\" href=\"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[199],"tags":[525,526,527],"class_list":["post-5369","post","type-post","status-publish","format-standard","hentry","category-commodities","tag-mcp","tag-molycorp","tag-rare-earths-2"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Molycorp Share Offering and Financing Announcements Create An Overhang - ONE-TWENTY TWO: Trading Financial Markets<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Molycorp Share Offering and Financing Announcements Create An Overhang - ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"og:description\" content=\"(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) First, Molycorp (MCP) looked poised for a rally. Soon after that, the technicals turned, indicating pressure was building for a big move. I hedged, but I remained bullish. Last night, MCP made two financial announcements ... Read more\" \/>\n<meta property=\"og:url\" content=\"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/\" \/>\n<meta property=\"og:site_name\" content=\"ONE-TWENTY TWO: Trading Financial Markets\" \/>\n<meta property=\"article:published_time\" content=\"2011-06-08T20:23:46+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2011-06-09T22:54:25+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg\" \/>\n<meta name=\"author\" content=\"Dr. Duru\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@drduru\" \/>\n<meta name=\"twitter:site\" content=\"@drduru\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Dr. Duru\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/\"},\"author\":{\"name\":\"Dr. Duru\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"headline\":\"Molycorp Share Offering and Financing Announcements Create An Overhang\",\"datePublished\":\"2011-06-08T20:23:46+00:00\",\"dateModified\":\"2011-06-09T22:54:25+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/\"},\"wordCount\":235,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2011\\\/06\\\/110607_MCP.jpg\",\"keywords\":[\"MCP\",\"Molycorp\",\"rare earths\"],\"articleSection\":[\"Commodities\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/\",\"name\":\"Molycorp Share Offering and Financing Announcements Create An Overhang - ONE-TWENTY TWO: Trading Financial Markets\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#primaryimage\"},\"thumbnailUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2011\\\/06\\\/110607_MCP.jpg\",\"datePublished\":\"2011-06-08T20:23:46+00:00\",\"dateModified\":\"2011-06-09T22:54:25+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#primaryimage\",\"url\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2011\\\/06\\\/110607_MCP.jpg\",\"contentUrl\":\"http:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2011\\\/06\\\/110607_MCP.jpg\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/2011\\\/06\\\/08\\\/molycorp-overhang\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Molycorp Share Offering and Financing Announcements Create An Overhang\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#website\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/\",\"name\":\"ONE-TWENTY TWO: Trading Financial Markets\",\"description\":\"Exploring the poetry in financial markets for students of money and economy since the year 2000.\",\"publisher\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":[\"Person\",\"Organization\"],\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/#\\\/schema\\\/person\\\/d9569fde6c701b021a8d958f775be9a0\",\"name\":\"Dr. Duru\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"url\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"contentUrl\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\",\"width\":900,\"height\":100,\"caption\":\"Dr. Duru\"},\"logo\":{\"@id\":\"https:\\\/\\\/drduru.com\\\/onetwentytwo\\\/wp-content\\\/uploads\\\/2018\\\/09\\\/cropped-masthead-header.jpg\"},\"sameAs\":[\"http:\\\/\\\/www.drduru.com\\\/onetwentytwo\",\"https:\\\/\\\/www.instagram.com\\\/drduru_market_breadth\\\/\",\"https:\\\/\\\/x.com\\\/drduru\"]}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Molycorp Share Offering and Financing Announcements Create An Overhang - ONE-TWENTY TWO: Trading Financial Markets","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/","og_locale":"en_US","og_type":"article","og_title":"Molycorp Share Offering and Financing Announcements Create An Overhang - ONE-TWENTY TWO: Trading Financial Markets","og_description":"(This is an excerpt from an article I originally published on Seeking Alpha. Click here to read the entire piece.) First, Molycorp (MCP) looked poised for a rally. Soon after that, the technicals turned, indicating pressure was building for a big move. I hedged, but I remained bullish. Last night, MCP made two financial announcements ... Read more","og_url":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/","og_site_name":"ONE-TWENTY TWO: Trading Financial Markets","article_published_time":"2011-06-08T20:23:46+00:00","article_modified_time":"2011-06-09T22:54:25+00:00","og_image":[{"url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg","type":"","width":"","height":""}],"author":"Dr. Duru","twitter_card":"summary_large_image","twitter_creator":"@drduru","twitter_site":"@drduru","twitter_misc":{"Written by":"Dr. Duru","Est. reading time":"1 minute"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#article","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/"},"author":{"name":"Dr. Duru","@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"headline":"Molycorp Share Offering and Financing Announcements Create An Overhang","datePublished":"2011-06-08T20:23:46+00:00","dateModified":"2011-06-09T22:54:25+00:00","mainEntityOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/"},"wordCount":235,"commentCount":0,"publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg","keywords":["MCP","Molycorp","rare earths"],"articleSection":["Commodities"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/","url":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/","name":"Molycorp Share Offering and Financing Announcements Create An Overhang - ONE-TWENTY TWO: Trading Financial Markets","isPartOf":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#website"},"primaryImageOfPage":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#primaryimage"},"image":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#primaryimage"},"thumbnailUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg","datePublished":"2011-06-08T20:23:46+00:00","dateModified":"2011-06-09T22:54:25+00:00","breadcrumb":{"@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#primaryimage","url":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg","contentUrl":"http:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2011\/06\/110607_MCP.jpg"},{"@type":"BreadcrumbList","@id":"https:\/\/drduru.com\/onetwentytwo\/2011\/06\/08\/molycorp-overhang\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/drduru.com\/onetwentytwo\/"},{"@type":"ListItem","position":2,"name":"Molycorp Share Offering and Financing Announcements Create An Overhang"}]},{"@type":"WebSite","@id":"https:\/\/drduru.com\/onetwentytwo\/#website","url":"https:\/\/drduru.com\/onetwentytwo\/","name":"ONE-TWENTY TWO: Trading Financial Markets","description":"Exploring the poetry in financial markets for students of money and economy since the year 2000.","publisher":{"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/drduru.com\/onetwentytwo\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":["Person","Organization"],"@id":"https:\/\/drduru.com\/onetwentytwo\/#\/schema\/person\/d9569fde6c701b021a8d958f775be9a0","name":"Dr. Duru","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","url":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","contentUrl":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg","width":900,"height":100,"caption":"Dr. Duru"},"logo":{"@id":"https:\/\/drduru.com\/onetwentytwo\/wp-content\/uploads\/2018\/09\/cropped-masthead-header.jpg"},"sameAs":["http:\/\/www.drduru.com\/onetwentytwo","https:\/\/www.instagram.com\/drduru_market_breadth\/","https:\/\/x.com\/drduru"]}]}},"_links":{"self":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/5369","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/comments?post=5369"}],"version-history":[{"count":10,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/5369\/revisions"}],"predecessor-version":[{"id":5403,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/posts\/5369\/revisions\/5403"}],"wp:attachment":[{"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/media?parent=5369"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/categories?post=5369"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/drduru.com\/onetwentytwo\/wp-json\/wp\/v2\/tags?post=5369"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}