Soul_surfer and rising - a very interesting post; cheers.This is...

Soul_surfer and rising - a very interesting post; cheers.

This is a major change in sentiment for Hallgarten from less than 12 months ago, when they were tipping Molycorp and Lynas to be the two main RE ex-China producers owing to first mover advantage.

MCP has had a massive rise and fall over the last couple of years since IPO, including serious hammering lately, but US govt support will likely get them through due to strategic significance of having a domestic producer.

I think the article makes some valid points re management decisions on LAMP in Malaysia. But like many posters I would agree that it simplifies the existing options in a way many would disagree with.

Hallgarten & Co cannot be dismissed out of hand, given that they are a well regarded research outfit from NY that are respected by much of the US investment community. It would be interesting to know when over the last 12 months they switched to shorting LYC. Their long call on MCP would be savagely underwater if it was anything but very recent!

See link for interesting Hallgarten research note from Aug 2011:

http://www.hallgartenco.com/file.php?path=Mining&filename=March of the lemmings.pdf