As the markets try and find some life, certain stocks continue to get crushed.
A great example of this was today in Facebook Inc (NASDAQ:FB). Every media outlet and average investor was bearish going into today because a crap load of insider shares were going to be unlocked. This had the stock lower pre market, trading at $19.65. While the whole world seemed bearish, I knew much better. Look at the facts. We all knew this was coming months ago. Over the last few weeks every average, punk investor sold into this news thinking it would dump. The stock declined from $25.00 to $19.65 on this speculation.
Yesterday, I said buy. Why? Because everyone that was going to sell had sold. The stock had already factored in the news and the overly bearish sentiment made it a screaming buy. After trading at $19.65 pre market, the stock is currently trading at $21.39, +1.53 (7.70%). Amazing profits for all that ignored the Wall Street hype and bought.
Another stock near a bottom is Molycorp Inc (NYSE:MCP). Molycorp had great earnings last week and opened with a nice gain into the mid $9.00 level. However, later that day it was revealed there was an investigation ongoing into the company. The stock has since dumped to its current range of $6.37, -0.30 (-4.50%). At this stage, one has to believe a majority of the sellers that wanted to sell have sold. In addition, the bad news should be overly baked in the cake. This may be a very nice long term entry level on Molycorp. Rare earth metals and minerals are only going to be rarer in the future.
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