Molycorp Inc.

I have been wary about profiling bulletin board-listed Lighting Science Group Corp. (OTC: LSCG.OB), a light-emitting diode (LED) lighting manufacturer/marketer:

  • On the one hand, the company’s one-year 700 percent stock increase seems justified by its impressive 2010 revenue growth based on what the company claims are the most efficient and cheapest LED products on the market. 
  • On the other hand, the company’s net losses have been erratic and larger than revenues. And a bulletin board listing always saps a certain amount of confidence.

Shares of California rare earth elements (REEs) miner Molycorp, Inc. (NYSE: MCP) were trading up early today after Monday’s nine percent jump. All this in the face of today being the first day that insiders are able to sell their shares (53.125 million) purchased in the company’s initial public offering (total offering 82.29 million) in late July 2010.

Directors, executive officers and other insiders of Molycorp, Inc., (NYSE: MCP) get their first opportunity tomorrow to sell their shares in the company since its initial public offering (IPO) in late July. 

Molycorp is the cornerstone of the U.S. effort to gain a foothold in the production of rare earth elements (REEs), critical ingredients in wind turbines, electric vehicles, thin-film photovoltaic (PV) solar system and high-efficiency lighting. 

This will be known as the year a small group of companies exploring for “rare earth elements”, known in the red-hot niche sector as REEs, dramatically outperformed all other clean tech and energy efficiency companies, as well as all other sectors of the stock markets.

Shares of several companies pursing REEs, which are critical ingredients in wind turbines, electric vehicles, thin-film photovoltaic (PV) solar system and high-efficiency lighting, have increased more than two or three times in 2010. Examples: Molycorp, Inc., (NYSE: MCP) +394 percent, Lynas Corporation Limited (ASX: LYC.AX) +260 percent, Avalon Rare Metals, Inc. (TSE: AVL.TO) (AMEX: AVL) +125 percent , Rare Element Resources Ltd. (AMEX: REE) (CVE: RES.V) +361 percent, China Shen Zhou Mining & Resources Inc. (AMEX: SHZ) +1200 percent; and penny stock Focus Metals Inc. (CDNX: FMS.V) +232%.

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