Molycorp Falls 11% (MCP)
Shares of high flying Molycorp (NYSE: MCP) have been undergoing a steep correction on Thursday. The stock has lost 11.40% to $53.78 on heavy volume. Around 10.24 million MCP shares have traded hands compared to a daily average volume of 5.03 million.
An 11% correction is steep, but considering that this is MCP, a little perspective is likely in order. This is like a 3% correction in a normal stock. Even after today's plunge, MCP is still up almost 64% in the last month.
High risk, high reward has been the name of the game in this stock and today's activity does nothing to change that fact. Investors who are looking to make big returns in this name are going to have to deal with the inevitable violent corrections.
Prudent investors should stay away, and even those with a strong appetite for risk should approach MCP with extreme caution.
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