Are Molycorp Inc (MCP) and Genworth Financial Inc (GNW) Seeing A Turnaround?
New York, NY – GDP INSIDER – 03/24/2015.
This article discusses two companies: Molycorp Inc (NYSE:MCP) and Genworth Financial Inc (NYSE:GNW)
Molycorp Inc (NYSE:MCP) soared yesterday with the stock gaining 26.36% or $0.0949 to close at $0.4549 on very heavy trading of 16.980 million shares, compared to its three month average trading volume of 5.991 million. The manufacturer of custom engineered rare earth and metal products got the boost after the news program 60 minutes aired a report about U.S. defense and tech industries dependence on rare earth, that can almost exclusively only be found in China. The gains provide a welcome boost to Molycorp Inc, as the share price has been in freefall since the middle of February losing over 50% of its value and the company is still struggling with negative revenue growth of -6.10% year on year and diluted EPS of -$2.70. Even so, with yesterday’s gains, the stock still has RSI of 36.73 and with further positive news in this specialized sector, the stock could continue to recover making it a definite hold and potential buy.
Genworth Financial Inc (NYSE:GNW) bounced back yesterday with the stock gaining 5.01% or $0.37 to close the day at $7.75 with more than 13.604 million shares changing hands on much higher than its three month average trading volume of 6.499 million. The wealth management, insurance and financial solution provider has been trending down of late, with the stock losing 8.82% of its value so far this year and significantly underperforming the S&P 500 which is up 2.20% over the same period. The boost came after Biogen Idec Inc (NASDAQ:BIIB) announced that it had obtained very positive results from its new Alzheimer drug, which could theoretically reduce insurance claims against Genworth Financial Inc from its long term care insurance products. Whether this relatively tenuous link between a new drug and an insurance provider can maintain any kind of momentum seems unlikely, and the stock will probably fall back again soon making it a sell or risky hold.
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