MP - Why MP Materials Fell as Much as 19% Today
Shares of MP Materials (NYSE: MP) , which is looking to be an integrated North American producer of rare earths metals , fell as much as 19% on Feb. 3. The only news out of the company was the date of its upcoming fourth-quarter 2021 earnings release. That was a non-event, so it was probably the short-seller report that also came out today that was the cause of investor concerns.
Bonitas Research, which is openly short MP Materials, released a document today outlining its concerns about MP Materials' business. These types of research reports often cause investors to sell the target company, fearing that the information contained in the report is accurate. That's not an unreasonable response, but it is important to note that Bonitas has a vested interest in seeing the stock move lower. In other words, reports like this should be taken with a grain of salt. MP Materials has not yet responded to the allegations.
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Why MP Materials Fell as Much as 19% Today