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Gold/Mining/Energy : MP Systems Corp. (formerly Molycorp)
MCP 30,550-6.9%Nov 5 4:00 PM EST

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To: sense who wrote (38)2/26/2013 8:33:46 AM
From: feedmindanaochildren  Read Replies (1) of 111
 
If I have learned anything over time it is that everything is cyclical and knowing when the cycle has concluded is a main ingredient in making money. Sometimes it is in the final death throes like a star imploding and becoming a black hole....such was the case with many Wall Street "babies" during the Dot.com era and beyond.. Also Worldcom and Enron........while there are others who look as if they will implode and yet manage to pull out of the spin at the last moment.....I mentioned GLW in a previous post as one and Fannie Mae MAY be another one...only time will tell in that situation. Fortunately, or unfortunately, depending on which side of the fence one is on.....a company can file for reorganization....screw the shareholders and come back again with new shares...such was the case with General Motors and a now defunct Pan Am who did that a few times.
One of the few "indicators" that I can use in the "non-pinky land" to help me decide which will remain a star and which will become a black hole is the indicator of insider trading.....It was a glaring red flag during the Enron debacle as insiders were selling as if it were a fire sale (which it was), while (redundancy inserted here) Corning Glass' CEO put a (mere) $million of his confidence behind the company and it was not in the form of exercising existing (free) options.
My concern for the near term is how the situation with the REE's is going to influence (subtlety is inserted here) "other" developing companies that the Chinese may be interested in getting involved with right now. As with any commodity, when it drops then venture capital has a tendency to dry up. It happened with the oil companies in the 80's but hopefully it does not happen in this situation, but it does give the Chinese a very strong poker hand when negotiating equivalent to the buyer of a house when real estate prices are plummeting (imho).
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