Molycorp explodes as insiders go on buying spree
By the close on Friday Molycorp (NYSE: MCP) was changing hands for $8.62, up $1.39 or 19.2%, after filings showed that insiders at the company has been stocking up on the counter.
A number of executives made the most of the opportunity to pick up shares cheaply that have been in a downward spiral since the 8 November revelation that the SEC has cast doubt on the Colorado company's financial disclosures.
Bloomberg reports "John Ashburn, an executive vice president and the company’s general counsel, bought 10,000 shares and Charles Henry, a director, purchased 45,192 shares, according to filings made after the close of trading on Nov. 21. Chief Executive Officer Mark Smith purchased 20,000 shares at $6.20 each, according to a Nov. 19 filing."
Despite the shortened post-Thanksgiving trading session a whopping 13 million shares were traded – more than double the usual volumes.
The stock is one of the most volatile on the NYSE with an eye-watering 52-week trading range of $5.75 to $35.79.
Earlier in November the rare earth producer surprised investors with top line growth of 49% that sent its shares soaring after hours, only to fall back again when it was disclosed that the market regulator had launched a formal investigation of public disclosures by the company.
Molycorp – destined to become the number one producer of the 17 elements outside China – is aiming for an ultimate production capacity target of 40,000 tonnes per annum from its Mountain Pass mine in California.