Stocks Under $10: How Overvalued is Molycorp?

Richard Suttmeier |

Mountain Pass MolycorpMolycorp (MCP) – ($6.76) has recently been downgraded to a Sell rating according to ValuEngine with fair value at 1.75, which makes the stock 300.0% overvalued. The one-year price target is $6.25. ValuEngine Profile – “Molycorp, Inc. produces rare earth oxide (REO) in the Western hemisphere. The Company expects to become the most integrated producers of rare earth products, including oxides, metals, alloys and magnets. The rare earths are critical inputs in existing and emerging applications including: clean energy technologies, such as hybrid and electric vehicles and wind power turbines; multiple high-tech uses, including fiber optics, lasers and hard disk drives; numerous defense applications, such as guidance and control systems and global positioning systems; and advanced water treatment technology for use in industrial, military and outdoor recreation applications. Molycorp, Inc. is based in Greenwood Village, Colorado.”

Analysis – The daily chart for MCP shows declining momentum with the stock above its 21-day and 50-day simple moving averages at $5.80 and $5.73 and below its 200-day simple moving average at $8.85. My weekly value level is $5.58 with quarterly risky level at $7.76.

 


Courtesy of Thomson / Reuters

Ticker

Company Name

Mkt Price

Fair Value

One-Year Price Target

Last 12-Mon Retn (%)

5-Yr Avg Retn (%)

P/E Ratio

MCP

MOLYCORP

6.76

1.75

6.25

-72.51

-26.71

N/A

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