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

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

Companies

Symbol Name Price Change % Volume
WVFC WVS Financial Corp. 15.20 -0.05 -0.33 650 Trade

Comments

Emerging Growth

Radient Technologies Inc.

Radient Technologies Inc is engaged in research, development and commercialization of environmentally responsible technology for the extraction, isolation and purification of soluble products from a wide range of materials using…

Private Markets

Almond Smart Home Router by Securifi

Securifi sells user friendly touch screen routers that also have support for IoT/home automation.Securifi’s Almond revolutionized wireless router setup with its easy to use Touchscreen Interface in 2012. Now our…

Ozobot by Evollve Inc

Ozobot is a world leader in compact super intelligent robots that entertain and educate through fun interactive gaming.