Rare Earth Super Stock Molycorp (MCP) Has IPO Lock-Up Expiring Soon
Tweet
Share
E-mail
Get Alerts MCP Hot Sheet
Join SI Premium – FREE
Molycorp (NYSE: MCP) has been on traders radars for months as action in the rare earth sector reached a frenzy after China pulled back on exports and prices of the elements that comprise the rare earth table skyrocketed. Shares are MCP are up an astonishing 210 percent since its July 2010 IPO.
Now the stock is attracting attention for another reason - IPO lock-up expiration. Molycorp confirmed to StreetInsider.com that the IPO lock-up is expiring on Tuesday January 25, 2010.
After the lock-up agreements expires, an additional 53,125,000 shares will be eligible for sale in the public market. Total shares outstanding currently sit at 82.3 million.
How much will the lock-up expiration impact shares of Molycorp? That remain to be seen, but shares of another hot stock Tesla Motors (Nasdaq: TSLA) saw its stock drop 15 percent the day its lock-up expired.
Over the longer-term, Molycorp's fortunes will likely be more closely tied to rare earth prices and the situation in China, but if the latest pullback in the shares of rare earth stocks tells you anything it is that the sector has gotten frothy and was due for a correction.
Maybe the lock-up expiration will be a blessing in disguise for Molycorp shareholders, as weak-hands will exit the stock making way for larger, longer-term shareholders who have the patience to wait for the company to gets its new rare earth facility online.
Now the stock is attracting attention for another reason - IPO lock-up expiration. Molycorp confirmed to StreetInsider.com that the IPO lock-up is expiring on Tuesday January 25, 2010.
After the lock-up agreements expires, an additional 53,125,000 shares will be eligible for sale in the public market. Total shares outstanding currently sit at 82.3 million.
How much will the lock-up expiration impact shares of Molycorp? That remain to be seen, but shares of another hot stock Tesla Motors (Nasdaq: TSLA) saw its stock drop 15 percent the day its lock-up expired.
Over the longer-term, Molycorp's fortunes will likely be more closely tied to rare earth prices and the situation in China, but if the latest pullback in the shares of rare earth stocks tells you anything it is that the sector has gotten frothy and was due for a correction.
Maybe the lock-up expiration will be a blessing in disguise for Molycorp shareholders, as weak-hands will exit the stock making way for larger, longer-term shareholders who have the patience to wait for the company to gets its new rare earth facility online.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla readies August launch of CyberCab - The Information
- Mizuho Reiterates Outperform Rating on Uber Inc. (UBER)
- The Biggest Winners Don't Compete in a Category. They Rewrite It. One Company Is Betting It Can Too.
Create E-mail Alert Related Categories
IPOs, Insiders' Blog, Trader TalkRelated Entities
TeslaSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
