Molycorp (MCP) Higher on Takeover Speculation
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Shares of rare earth producer Molycorp, Inc. (NYSE: MCP) is higher in pre-open trading Monday after Bloomberg's Real M&A column highlighted the stock as an attractive takeover target.
The article notes shares of Molycorp are trading at 3.4x next year's EBITA, making it cheaper than 9 out of 10 metals and mining companies.
The company's recent deal to buy Neo Material Technologies, will boost the company's magnet-making ability and help protect investors from the wild price swings the stock has seen as a just pure commodity-play.
The company will also gain access to processing sites in China, which could lure the likes of BHP Billiton Ltd. (NYSE: BHP) or Rio Tinto (NYSE: RTP).
Shares of Molycorp last traded at $35.10 in pre-open trading Monday, up 3.75 percent from Friday's close.
The article notes shares of Molycorp are trading at 3.4x next year's EBITA, making it cheaper than 9 out of 10 metals and mining companies.
The company's recent deal to buy Neo Material Technologies, will boost the company's magnet-making ability and help protect investors from the wild price swings the stock has seen as a just pure commodity-play.
The company will also gain access to processing sites in China, which could lure the likes of BHP Billiton Ltd. (NYSE: BHP) or Rio Tinto (NYSE: RTP).
Shares of Molycorp last traded at $35.10 in pre-open trading Monday, up 3.75 percent from Friday's close.
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