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Subject:  Possible call option MCP Date:  8/5/2012  11:50 AM
Author:  PaulEngr Number:  10915 of 11154

First off, let me just say that MCP (MolyCorp) is definitely NOT a stock to be in for the faint hearted. In 2 months time I watched my holdings go from $33 to $40. Then in a matter of days it went from that to $65 at which point I bought a protective put. Then it went to over %70, then plunged all the way back to $48. Needless to say I breathed a sigh of relief for having bought an insurance policy. This kind of price move is not unusual for MCP. So in some ways it's almost to the level of playing around with highly leveraged (ATM) puts and calls.

Just recently it plunged from around $17 to $11.50 much to my dismay. It's not that I won't hold onto what I have. It's just that these kinds of things are somewhat aggravating on the stomach if you know what I mean. Now how I'm thinking of responding to this...more back story.

The back story is this. MCP is a mining company that started out by going back and redeveloping/restarting/rebuilding a site in California to produce rare earth metals. For those not in the know, rare earths are a group of metals that are the last two rows on the periodic table. Chemically they are all ALMOST identical...almost, but not quite. Most are radioactive to one degree or another because on an atomic level, their nucleus's are s