Molycorp Shares Rebound; Analyst Suggests Sharp Move Lower at Open Was Overreaction
Molycorp (NYSE: MCP) shares continue to bounce sharply after gapping down more than 9 percent amid news of a delayed Q4 earnings release. The stock last traded at $6.15, down just 1.4 percent.
Traders in the stock may be giving some heed to a call from Byron Capital's Jonathon Hykawy earlier. Hykawy noted the company's impairment news was not a "shock." He said he was surprised by the "ferocity" of investors knee-jerk reaction given the postponement should not impact the prospect of production ramps.
Hykawy said he is waiting for Molycorp's official SEC filing which could show if the decline in the company's assets broke its covenants for convertible debt.
Byron Capital maintains a Buy rating and $15 price target on shares of Molycorp.
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