Dines says buy Molycorp

Molycorp Inc (U:MCP)
Friday August 27 2010 - In the News

James Dines, in the Aug. 20, 2010, edition of The Dines Letter, says buy Molycorp Inc. at $15.13. This is the first time the editor has recommended the rare earth company, which he says suddenly went public on July 29. He includes Molycorp in his "rare earth stocks" from which he expects high risk, high potential capital gains. According to Mr. Dines, Molycorp's Mountain Pass project in California will be the largest rare earth project outside of China. He recommends the stock for conservative, long-term investors. Elsewhere in the newsletter, Mr. Dines says the United States Department of Defense has already felt the effects of China's rare earth export quotas. According to the editor, the DOD has been informed that deliveries of weapons, made with rare earths, are delayed and may be delayed indefinitely. The editor says China tightened its supply to satisfy its own $750-billion renewable energy infrastructure drive over the next 10 years. Mr. Dines says he expects China's green policy will catapult it far beyond America and Europe in clean energy innovation. The editor predicts China's domestic demand for rare earths will eventually even exceed the country's supply.

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