Over the last few weeks, rare earth stocks have not been immune to the overall market downturn. The last week has seen a decline in all the exploration and mining companies exposed to rare earth elements. The largest declines were by Molycorp and Quest Rare Minerals.
In a recent article by ETF Trends, it is proposed that the decline in the rare earth basket may have been magnified by disclosure that certain insiders of Molycorp intend to sell shares. This added to the already softening of the overall market.
Taking a look at the charts of a few of the companies one can see for themselves. Have these recent developments created bottomfishing opportunities?
I'd be interested in hearing your feedback.