Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Molycorp (NYS: MCP) fell another 11% today after the company announced pricing for its debt and stock offering.
So what: Yesterday I reported on the dilutive offering and what a bad sign it is for the company, and today we found out just how little investors wanted to buy new shares of the stock. Molycorp said it was pricing the common stock portion of the offering at $10 per share, which is why shares have fallen to just below that price today.
Now what: There's really nothing good I can say about Molycorp at this point. The company's cash flow is disappointing because rare-earth-mineral prices are falling and the company has now diluted shareholders just to build out capacity. I continue to think the stock is off limits until we see the company reach full production and prices stabilize on the global market.
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The article Why Molycorp's Shares Plunged originally appeared on Fool.com.
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