Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

The Best Way To Invest In This Vital Tech Resource

The company has enough cash on hand to survive hard times: $264 million, compared with current liabilities of just $181 million. Molycorp is looking for a revolving line of credit as well to the tune of $125 million to help pay ongoing capital expenditures related to the company’s deposit in Mountain Pass, Calif. Molycorp has an operational capacity of 15,000 metric tons per year and is working toward a goal of 19,050.

As of 2012, global demand for rare earths was around 145,000 metric tons, but supply was limited to just 113,000 — worldwide demand is forecast to rise 7.6% by 2015, up to 180,000 metric tons. That’s a simple supply-and-demand story — and investors are beginning to take notice.

More than 15 million shares of stock were purchased in the past six months by insiders — a classic sign of strength for prospective investors. The high short float of 33% should be taken into consideration but may provide an opportunity for a short squeeze should the rare earths market rise faster than predicted during the second half of this year.

Risks to consider: The Russian investment plan should cause rare earth prices to drop but help Molycorp manufacture in greater supply. Management will need to be effective at controlling cash costs and improving efficiencies.

Actions to Take –> From a technical standpoint, the stock has had a multiple bottom around $5, which is seen as a buy signal. At just above $7, this stock has plenty of room to run as investors begin to take notice of this forgotten sector.

Most people have no idea that thanks to a special deal made during the Clinton administration, Putin now has the opportunity to disrupt 10% of America’s electrical supply — before the end of the year. Click here to get all the shocking details.

– Daniel Cross
Warren Buffett’s Top 5 Stocks Buffett’s firm, Berkshire Hathaway, holds dozens of stocks. But these five make up 75% of its portfolio… worth $65 billion. Click here to get Buffett’s top 5 stocks plus his 16 latest buys, FREE

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.