Why Molycorp's Shares Dropped
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 rare earth mineral miner Molycorp fell as much as 10% today after it announced a delay in filing quarterly results.
So what: The company said it will delay fourth quarter and annual results, as it analyzes how much it will impair goodwill related to its acquisition of Neo Material. The company bought Neo for $1.3 billion, and said the charges will be "substantial."
Now what: I've been a Molycorp bear for a long time, and this only confirms my stance on the stock. Mineral prices are plunging, and now accounting issues are plaguing the company. There's no reason to buy here, because a delay in filing statements is never a good thing.
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The article Why Molycorp's Shares Dropped originally appeared on Fool.com.
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