Molycorp Looks Interesting Long Term (MCP)

The green IPO market has had a tough time in the last year. While green IPO’s have seen much fanfare, most of them have been performing quite poorly. Hyped lithium battery maker, A123 Systems, Inc. (NASDAQ: AONE) and bio-tech energy producer Codexis (NYSE: CDXS) have seen their share prices fall well below their initial offering prices. It remains to be seen whether these greentech companies will live up to the hype, one recent stalled IPO might make a good long term portfolio buy.

Molycorp’s (NYSE: MCP) share price seems to be stuck in neutral and that might be a good thing for investors wanting to get in post IPO. The company is one of the few ways investors can add rare earth minerals to their portfolios. These elements find their way into everything from CFL bulbs and iPods to wind turbines and rechargeable batteries. The kicker is that China controls 95% of total worldwide production and the known supply of rare earth metals, and almost 100% in the case of dysprosium and terbium. As one of the few publically traded options, Molycorp should be on commodities investor’s radar screens.

Over the longer term, Molycorp’s current share price might seem like a bargain as the supply of these metals dwindles.

Beat the market consistently by receiving real-time trade alerts from the ETF Professor!