change of sentiment?, page-5

Old news not likely to have impacted last night's buying and I'd suggest more a confidence ploy given the SEC investigation on Moly for false reporting. Jack Lifton's comments on Moly Directors buying stock from three days ago:

"It seems to me that if Mr Smith had sold shares at $6.20 for any reason other than to pay for a life saving surgical intervention for a close relative the market for MCP would have simply gone down the drain. He had therefore just the two choices, do nothing or buy some shares. In fact since he netted more than $10 million on the insider sell out in which Ross Bhappu (On behalf of Resource Capital(?)) netted several hundred million dollars wouldn't a purchase of a million shares by Mr Smith have been a more appropriate and commendable vote of confidence? Mr Bhappu, as I recall bought 2,500,000 shares at $10, recently, so he, Bhappu has already lost $7,500,000.00 since then. If MCP goes to $27 as Byron Capital is projecting then Mr Bhappu stands to make another $40,000,000.00 while Mr Smith would net some $400,000.00. If you are looking for an internal vote of confidence Mr Bhappu has Mr Smith beat by 100 to 1.

Lynas said, I believe, that after a six week first batch time that their system would be brought up to 400 tons a week of product in the second quarter of its going into full operation. I think that is ambitious. As I understand it Molycorp is not going to run its original SX plant after it starts the new plant. The question is; How long will it take to bring the new plant up to 400 tons a week of product output. I would think that as of today Lynas has a slightly shorter lead time. If both projects succeed then by the end of 2013 they will be together producing an annualized 40,000 ADDITIONAL TO THE EXISTING MARKET tons of light rare earth products. Isn't just this fact alone a market damper for lanthanum, cerium, and even, perhaps for neodymium-praseodymium prices?

Do we know the break-even points for Molycorp or Lynas? How little do they need to produce to keep operating in the black? Stay tuned as reality and I think lower-cost competition sorts out the true market size."

Further comment:

"yes Mr.Bhappu beats Mr.Smith 100:1 . But worse , he bought a value of $25,000,000.00 , but one year earlier he SOLD at $51 approx. $250,000,000.00 , 10 times more ! I.e. he bought only 10% back from the value he had earlier."

Chairman of Moly cashed out $250M at the earliest op after the float and recently bought back $25M at $10.

http://seekingalpha.com/article/1024251-molycorp-ceo-confidence-in-light-of-sec-action?source=yahoo