Moly's Fall

On the New York Curb Exchange, few stocks have scooted up faster and higher in a year than Molybdenum Corp., a little company with a new find of rare minerals (TIME, Oct. 15). One of the heaviest buyers was Broker Ted Sterling of Toronto's Watt & Watt brokerage house, who spread the word among his customers that the stock looked good. As the customers and other buyers in the U.S. and Canada climbed aboard the gravy train, "Moly" soared from $13.50 to $80.50 a share.

Last week, under a flood of selling, Moly was going down faster than a guided missile. Off 15 points from its high as the week began, Moly dropped another 24 points in five days to a low of $41. In Toronto, angry investors swirled into Watt & Watt trying to get out of Moly. At one point, there were so many orders to sell that trading on the curb had to be stopped.

Moly's fall is now being investigated by the Securities & Exchange Commission. Broker Sterling says he has done no unloading himself. Said he grimly: "I think the stock is sound. I do not plan to sell."

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