Molycorp (MCP) Crushed after (JPM) Downgrade

After a downgrade from JPMorgan Chase (NYSE:JPM), Molycorp got hammered on Tuesday, closing the session down by almost 22 percent.

According to JPMorgan, the reason for the downgrade from "Overweight" to "Neutral" was because of an ongoing drop in the price of rare earths.

Even more dramatic was the drop in the price target JPMorgan had on the company, lowering it from $105 to $66, a $39 drop.

Molycorp, whihc is the largest rare-earth company outside of China, has been riding the wave or higher rare earth prices because of China's decision to cut back on exports.

In some cases, such as with cerium oxide and other rare earths, it hasn't stopped the prices from dropping.

Molycorp closed Tuesday at $41.45, falling $11.56, or 21.81 percent.