Cheap Stocks to Buy Now: Molycorp (MCP)
If the volatility in gold prices is enough to make you queasy, then you should take some Dramamine before looking at the fall in rare earth minerals stocks.
These minerals are used in a variety of high-tech applications — from CFL bulbs to e-readers. And like many commodities, these rare earth metals have plunged on the back of potentially slowing growth. That sent once-market darling Molycorp (MCP) down to cheap stocks island.
Through its vertically integrated 26 locations, MCP is one of the world’s largest manufacturers of custom-engineered rare earth and rare metal products. That puts it in the prime driving seat as demand for these minerals rises in our high-tech world. That advantage is even more pronounced when you consider that China continues to play unfairly with the supply of these minerals.
At the end of the day, MCP stock is a volatile commodity play. However, over the longer term, the MCP could leave the land of cheap stocks and its current $5.40 price point to hit its former highs once again.
As of this writing, Aaron Levitt did not hold a position in any of the aforementioned securities.