GO
Loading...

Molycorp CEO Mark Smith Downplays Speculation

Tuesday, 20 Sep 2011 | 7:21 PM ET

Molycorp CEO Mark Smith on Tuesday downplayed the impact of speculative buying of rare earths, saying that while it may have temporarily caused prices to escalate, the supply and demand fundamentals remain unchanged.

"While there may be a short-term impact here, Molycorp remains very, very bullish on the prices of these materials," Smith said. "In fact, we're experiencing the highest margins ever in the history of our company."

Molycorp CEO on Stock's Drop
Molycorp shares plunged 22% Tuesday as JPMorgan lowered the stock to neutral on concerns about a drop in rare earth pricings. Mark Smith, Molycorp CEO, weighs in.

Smith said there was some speculative buying of rare earth materials in Shanghai, China earlier this year, which may have caused the prices to escalate faster than they were going to. With the release of that material during August, though, Smith has seen some relaxation of the price.

The Chinese government hasn't released information regarding the issue of speculative buying, but Smith said he got his information by attending a conference on rare earths that took place in China last week.

Smith is scheduled to testify before the U.S. Congress on Wednesday. He will address the benefits of the U.S. having a strategic rare earths reserve, much like it has an oil reserve.

______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.

Trader disclosure: On Sept. 20, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Tim Seymour owns (AAPL), (BAC), (INTC) and (DIS). Guy Adami owns (AGU), (C), (GS), (INTC), (MSFT), (NUE) and (BTU).

KAREN FINERMAN
Finerman and Finerman’s firm own AAPL short calls
Finerman owns (BAC) and Finerman’s firm own (BAC) leaps
Finerman owns GOOG
Finerman’s firm owns IBM
Finerman’s firm owns JPM leaps
Finerman and Finerman’s firm own MSFT
Finerman and Finerman’s firm own ORCL
Finerman owns IWM
Finerman owns MDY
Finerman owns SPY

JOE TERRANOVA
Terranova is long VRTS
Terranova is long OXY
Terranova is long HOS
Terranova is long OIH
Terranova is long CVI
Terranova is long AXP
Terranova is long EMC
Terranova is long WFM
Terranova is long AMZN
Terranova is long WFC
Terranova is long AAPL
Terranova is long IBM

STEVE WEISS
Weiss is long AAPL
Weiss is long QCOM
Weiss is short NFLX

MIKE KHOUW
Cantor Fitzgerald is a market maker in ADBE
Cantor Fitzgerald is a market maker in AMZN
Cantor Fitzgerald is a market maker in AAPL
Cantor Fitzgerald is a market maker in BAC
Cantor Fitzgerald is a market maker in CSCO
Cantor Fitzgerald is a market maker in C
Cantor Fitzgerald is a market maker in CSTR
Cantor Fitzgerald is a market maker in CMCSA
Cantor Fitzgerald is a market maker in DHI
Cantor Fitzgerald is a market maker in DTV
Cantor Fitzgerald is a market maker in EL
Cantor Fitzgerald is a market maker in XLF
Cantor Fitzgerald is a market maker in FCX
Cantor Fitzgerald is a market maker in GS
Cantor Fitzgerald is a market maker in GR
Cantor Fitzgerald is a market maker in GOOG
Cantor Fitzgerald is a market maker in IBM
Cantor Fitzgerald is a market maker in INTC
Cantor Fitzgerald is a market maker in IPG
Cantor Fitzgerald is a market maker in JPM
Cantor Fitzgerald is a market maker in JNPR
Cantor Fitzgerald is a market maker in KBH
Cantor Fitzgerald is a market maker in LVS
Cantor Fitzgerald is a market maker in LEN
Cantor Fitzgerald is a market maker in MTW
Cantor Fitzgerald is a market maker in GDX
Cantor Fitzgerald is a market maker in MGM
Cantor Fitzgerald is a market maker in ORCL
Cantor Fitzgerald is a market maker in PHM
Cantor Fitzgerald is a market maker in QCOM
Cantor Fitzgerald is a market maker in RAH
Cantor Fitzgerald is a market maker in GLD
Cantor Fitzgerald is a market maker in TOL
Cantor Fitzgerald is a market maker in TRV
Cantor Fitzgerald is a market maker in XLU
Cantor Fitzgerald is a market maker in WFM
Cantor Fitzgerald is a market maker in WYNN

JON NAJARIAN
Najarian is long AAPL through call spreads
Najarian is long ARMH through call spreads
Najarian is long IBM through call spreads
Najarian is long V through call spreads
Najarian is long LVS through call spreads
Najarian is long WYNN through call spreads
Najarian is long XOM through call spreads
Najarian is long CIGX outright

BRENT THILL
The U.S. equity strategist, a member of his team, or one of their household members has a long common stock position in Oracle Corporation.

CARTER WORTH
**no disclosures

CNBC.com with wires

  Price   Change %Change
MC
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report