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Molycorp Fighting To Keep Shares Above $1
Feb. 21, 2015 1:22 PM ET | About: Molycorp, Inc. (MCP)
By Richard Robinson
Molycorp (NYSE:MCP) hit its 52-week low of $0.28 on January 26.
Then, just seven days later, shares of MCP skyrocketed by more than 45.4%.
The following day, the stock rose another 66.6%!
By February 17, MCP shares rose by 8.9% - ending the day at $1.06. That's a
whopping 278% gain since its January low.
The massive uptick came after the company announced increased Q4 production
at its Mountain Pass Summit site.
Now, most companies (and investors) would be elated with a 278%-share-price
increase inside two weeks.
Not Molycorp…
Even after the recent triple-digit rise, the company's fate still hangs in
the balance.
From IPO to Penny Stock in Five Years
You see, a $1 share price is the magic number that can keep this company "
above water."
Back on January 2, the company announced that its common stock wasn't in
compliance with the NYSE's listing standard, which requires a minimum
average closing price of $1 per share over a period of 30 consecutive
trading days.
So the company is hoping that production increases, in combination with
lower costs, will improve the company's perilous financial position and
pathetic long-term stock performance.
And the company is making every effort to impress investors to keep its
stock above $1… even if the company has to game press releases to make it
happen.
Indeed, following a Moody's downgrade, Molycorp used a June 19, 2014 press
release to soften the blow… similar to its announcement earlier this month
to ease investor fears of a possible NYSE de-listing.
In both cases, relatively inconsequential information was released in such a
way to accomplish nothing more than stabilizing a stock price. But it's
nothing more than smoke and mirrors. |
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