Shares of MolyCorp, the big rare-earth company have been tanking (ht: @reformedbroker). The stock is off 24% since the beginning of the year.
The company has a $4 billion market cap, and hardly any actual business, but an ongoing wave of headlines out of China about rare earth export limitations has kept this stock (as well as others like Rare Earth Elements) aloft.
So what’s the problem now? Well, basically the greater-fool trade is probably about to come to an end.
The IPO lockup ends on January 20, and all of the insiders and investors who have made a fortune can start to unload their shares.
And these lockups matter. Shares of Tesla got crushed when its IPO lockup expired back in December.
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