Molycorp Continues To Surge Higher

Molycorp MCP was the top performer last week according to NASDAQ. Its stock jumped 23.3 percent as its "quiet period" came to a close. During this quiet period, usually 40 calendar days after a company goes public, the underwriters and insiders are prohibited from issuing research reports or earnings forecasts for the company. Now that the quiet period has ended, analyst coverage should pick up as well as earnings estimate and price target releases. Molycorp produces rare earth oxides, alloys, and magnets for cleantech product categories. Potential rare earth supply shortages could result in upward pricing pressure, which would be a big positive once its facility is fully operational in 2013. According to Piper Jaffray, risks include facility delays, cost over-runs, materialization end of market demand, material change in global supply dynamics, and reduced reserves. Piper Jaffray is initiating coverage of MCP shares with a Neutral rating and a $23 price target. Molycorp Closed Tuesday at $22