Molycorp (MCP) focuses on the production and sale of rare earth oxides. The company operates the Mountain Pass mine, a rare earth deposit located in San Bernardino County, California. Its rare earth products are used as inputs in various existing and emerging applications comprising clean energy technologies, multiple high-tech uses, defense applications, and water treatment technology. Molycorp recently reported a strong third quarter. The company recorded sales of $138.1 million, this is a 39 percent increase quarter over quarter. The company also saw operating income increase 72 percent to $72 million when compared to Q2 2011. Molycorp has been a real popular stock with hedge funds as investors expected the company to break China's monopoly on the rare earth market. Currently, over 90 percent of rare earth production comes from China.