Molycorp's (NYSE:MCP) Lock-Up Expiration Releasing 53 Million Shares for Sale

Molycorp (NYSE:MCP) will soon be releasing another 53 million plus shares into the market, as their IPO lock-up expiration is set to expire on January 25, 2010.

After the shares are released for sale it's probably the company will take a short-term hit on their price as at this time they have approximately 82.3 million shares outstanding.

Molycorp was fortunate in the timing of their IPO, as not long after China announced a 35 percent cut in rare earths exports, which drove up the share price of Molycorp, and brought it to the attention of investors.

The company has pulled back since then, but they still have a window of opportunity over the next couple of years as rare earths should rise in price on tight demand, as China holds rare earths close to their chest.

Since their 2010 IPO in June, shares of Molycorp have skyrocketed 210 percent.

Molycorp closed Friday at $42.99, down $2.60, or 5.70 percent.