Contributor: Karl Loomes
Better than expected earnings results are usually the cause for celebration. It is par for the course surely, that to one extent or another, a share price should tick-up if the numbers are good? Yet since rare earth elements (REE) producer Molycorp (MCP) reported its numbers this week, which were generally seen as strong in most areas, the share price has only gone one way – down! Of course it is no mystery why this is; the day after posting these buoyant figures Molycorp disclosed to investors that it was undergoing a Securities and Exchange Commission (SEC) investigation pertaining to the accuracy of its public disclosures. Ouch. Nobody gets happy over good results if you are suspicious they may not be accurate in the first place.... read more
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