before you panic the games are just starting

Rare-Earth Miner Molycorp Rises on Report Sumitomo May Invest
2010-12-06 18:16:55.515 GMT


By Jack Kaskey
Dec. 6 (Bloomberg) -- Molycorp Inc., owner of the worlds largest non-Chinese deposit of rare-earth metals, rose the most in three months after Nikkei English News reported Sumitomo Corp. may buy a stake in the U.S. company.
Molycorp climbed $2.82, or 10 percent, to $30.62 as of 1:07 p.m. in New York Stock Exchange composite trading. The shares earlier advanced 13 percent to $31.48, the biggest intraday gain since Sept. 7. The stock has more than doubled since the Greenwood Village, Colorado-based companys July initial public offering.
Sumitomo, Japans third-largest trading company, may agree to buy a stake in Molycorp this week, Nikkei said, without saying where it obtained the information.
Japan, the largest rare-earth importer, has stepped up efforts to diversify supply sources after shipments from China were disrupted in September. China accounts for 97 percent of global supply of rare-earths, used in electric-vehicle batteries, catalysts for refining petroleum, computer disk drives and military radar.
Jim Allen, Molycorps chief financial officer, didnt immediately return a call for comment. No one was immediately available for comment when Bloomberg News called Sumitomos headquarters in Tokyo outside of normal business hours.



Also the Morgan Stanley selling is all on prime account. Which means a reduction in holding is a reduction in short interest - Not selling on market. Selling into this news will further reduce the holding as the shorts will further close out their positions and once again the retail punter gets taken for a ride :)