Why Molycorp Is a Short Through Next Week

The fundamentals of Rare Earths do not really matter to me, nor do China’s actions in that regard, further loans from the United States government, or really any of the fundamental arguments in favor of the stock. Dahlman Rose has an $85.00/share price target on the stock, but no other Wall Street firm believes this stock is worth anywhere near that. Piper Jaffray’s price target is a more down to earth $43.00/share. But Wall Street sell-side price targets are not the reason for being short this stock either, nor are any valuation fundamentals. There are arguments on both sides as to why this stock might be worth anywhere from $30-60/share.