Burned by Molycorp
Moving to the sidelines in Molycorp may have looked like a smooth move at the time, but as it turns out, trader Brian Kelly fumbled this play.
“This is a momentum stock,” he said back on December 28th. “And not only that, it’s economically sensitive. So if you think there’s any type of slowing in the economy this is not the place you want to be. It’s a broken stock, I would get out.
Unfortunately no guts, no glory. After the company reported strong fiscal year 2011 results in February, shares of the rare-earth producer marched 12% higher.
So what does he have to say about this stock now?
“Clearly that was a bad call,” admits Kelly. “But I still think it’s a momentum stock and I’d still stay away.”
* You can find our conversation with Kelly about 1:40 into this video clip.
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Trader disclosure: On Mar 29, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Brian Kelly is long XLF; Brian Kelly is long SPY; Brian Kelly is short YEN; Brian Kelly is short EUROSTOXX; Steve Cortes is long GOOG; Steve Cortes is short CAT; Steve Cortes is short LVS; Steve Cortes is short AAPL; Steve Cortes is short XLI; Steve Cortes is short EUR VS. JPY; Steve Cortes is short DIS; Steve Grasso is long ASTM; Steve Grasso is long AVAV; Steve Grasso is long BA; Steve Grasso is long D; Steve Grasso is long FRO; Steve Grasso is long MHY; Steve Grasso is long NUAN; Steve Grasso is long MO; Steve Grasso is long PFE; Steve Grasso is long PRST; Steve Grasso is long S; Steve Grasso is long XLU; Steve Grasso is long ZAZA
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