MP Materials Again Targeted by Short Report

Posted on February 4, 2022 by Scott Shuda

Yesterday morning began with Breakout Investors once again studying a short report related to MP Materials Corp (MP), an American rare earth producer, that is heavily covered in one of our platform’s Breakout Rooms.  This short attack, launched by Bonitas Research, follows another last October by Grizzly Research. Last time, the Breakout community responded with a short article and a podcast walking through the short author’s arguments.  Some of us, after weighing the data, concluded that the selloff sparked by the Grizzly report was a buying opportunity, we bought and profited (see chart below and yellow mark indicating the timing of the Grizzley report).

Those who purchased MP Materials in October 2021 were rewarded. The rare earths company was highlighted later in 2021 when it was among the top-performing Breakout stocks during the month of November 2021.

So, what does this mean for MP stock in February 2022? The Breakout community is active sharing research and analysis.  In addition to scratching our heads asking “we are supposed to sell the stock on the charge that a Chinese government linked company overpaid for rare earth?”, we note that both JPMorgan and Cowen have been quick to write “Buy” recommendations.

Disclosure: I currently do not own any MP Materials, but that is likely to change within the next 24-hours.

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