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Wednesday, February 24, 2021 10:40:06 PM
By: Motley Fool | February 24, 2021
• MP Materials has a great story and investors seem to like to hear the company tell it. Here's why that was important today.
What happened
Shares of rare earth metals miner MP Materials (NYSE:MP) jumped as much as 15% today, with a big share increase coming at roughly 10 a.m. EST. The relatively young company, which came public via a blank check company (formally known as a special purpose acquisition company) in late 2020, is a play on a very interesting theme right now. Although nothing material changed about the story here today, the company did get to talk about it.
So what
Rare earth metals are used in high-tech products, notably the batteries that help make electric vehicles possible. However, the vast majority of these materials come out of Asia, mostly China. China has reportedly discussed the imposition of export restrictions, presumably as a trade bargaining tool, which could be a disaster for non-Chinese companies.
MP Materials is one of the few non-Chinese options for companies to acquire rare earth metals. So it is a play on two separate and high-profile issues today -- rare earth metals/electric vehicles and trade with China. On top of that, the company is in the process of expanding its business so that it can provide a broader and more comprehensive replacement to Chinese rare earth supplies. So there's even internal growth potential here, as well. All in, there really is a lot to like about the story MP Materials has to tell, and investors tend to like stories.
But today it looks like the telling of that story is the really big issue. The company presented at an industry conference today and will be featured on Mad Money, a popular business television show, later in the day. Events like these, particularly an appearance on a national television show, often draw investors into a stock. So it isn't surprising that MP Materials jumped on the conference presentation and the news of its television appearance.
Now what
Although the story behind MP Materials is quite compelling, it is important to consider that the stock has risen roughly 180% in about three months. That's a huge price increase in a very short period of time. Moreover, the gain today appears to be driven by publicity more than any major change in the story. So one might be tempted to suggest that investors are extremely enthusiastic right now, perhaps even exuberant. That's not a bad thing, but it looks like a lot of good news has been priced into the stock at this point. Long-term investors should keep that in mind when they consider the appeal of MP Materials' stock.
https://www.fool.com/investing/2021/02/24/why-mp-materials-stock-jumped-as-much-as-15-today/
Recent MP News
- MP Materials Announces Date for Second Quarter 2024 Financial Results and Webcast • Business Wire • 07/16/2024 08:05:00 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 06/12/2024 08:24:23 PM
- MP Materials to Participate in the J.P. Morgan 2024 Energy, Power and Renewables Conference • Business Wire • 06/10/2024 08:05:00 PM
- MP Materials to Participate in the Baird Global Consumer, Technology & Services Conference • Business Wire • 05/30/2024 08:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/28/2024 10:58:36 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/28/2024 08:05:10 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/20/2024 09:43:14 PM
- MP Materials to Participate in TD Cowen 2nd Annual Sustainability Week • Business Wire • 05/14/2024 08:05:00 PM
- MP Materials Reports First Quarter 2024 Results • Business Wire • 05/02/2024 08:05:00 PM
- MP Materials Announces Date for First Quarter 2024 Financial Results and Webcast • Business Wire • 04/11/2024 08:05:00 PM
- MP Materials Awarded $58.5 Million to Advance U.S. Rare Earth Magnet Manufacturing • Business Wire • 04/01/2024 01:05:00 PM
- MP Materials Announces Pricing of $650 Million 3.00% Convertible Notes • Business Wire • 03/05/2024 11:16:00 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 03/04/2024 12:19:00 PM
- MP Materials Announces New Share Repurchase Authorization • Business Wire • 03/04/2024 12:00:00 PM
- MP Materials Announces Proposed Offering of Convertible Notes • Business Wire • 03/04/2024 12:00:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/28/2024 12:29:17 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/22/2024 09:11:21 PM
- MP Materials Reports Fourth Quarter and Full Year 2023 Results • Business Wire • 02/22/2024 09:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/21/2024 12:00:31 AM
- MP Materials to Participate in Upcoming Conferences • Business Wire • 02/20/2024 09:05:00 PM
- MP Materials Announces Date for Fourth Quarter and Full Year 2023 Financial Results and Webcast • Business Wire • 02/01/2024 09:05:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 11:30:44 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 11:16:35 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 11:01:50 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 01/16/2024 10:37:07 PM
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