Patriot Coal (PCX) is a name I do not own, but sold off (was a spin off of Peabody Energy) -up massive today on a purchase yesterday and upgrade today - I'm mumbling to myself about missing that one.
- Coal producer Patriot Coal Corp. said Wednesday it agreed to buy Magnum Coal Co. for about $559 million. Under the terms of the deal, Magnum shareholders will get about 11.9 million shares of newly issued Patriot common stock. Patriot will also assume debt estimated at $150 million. Including the debt, Patriot estimated the deal was worth $709 million.
- Magnum operates 12 mines and seven preparation plants in Central Appalachia. With the addition of Magnum, Patriot said it will be the seventh largest coal producer in the U.S.
Walter Industries (WLT), a name a reader pointed out to me which has coal, natural gas, and I kid you not - home financing, all under 1 roof is also another name who technically has one of the most beautiful charts in my entire watch list.
But I'm adding to my 4 pure play names in my "coal basket" today: Peabody Energy (BTU), Arch Coal (ACI), Consol Energy (CNX), and Massey Energy (MEE). I've posted all the charts below so you can see why they look like they are turning up from a technical standpoint. Why they sold off, outside of hedge funds deciding en masse they are no longer worthy of their investment dollars, is beyond me. Fantastic fundamentals did not change last week, and then reverse again this week.
Long Peabody Energy, Arch Coal, Consol Energy, Massey Energy in fund; no personal positions
3 comments:
the AG stocks market manipulation the last few days is really remarkable.
Yep, I give them credit - they 'got me'. Shook me out.
Oh well, can't have both risk and reward at the same time. I took the safe route and that leaves you open for missed opportunity. Not going to chase here, will see what tomorrow brings.
If MOS reports pre market into a bad unemployment number it might be a moot point whatever they report. Trying to remain patient but I am gritting my teeth...
actually very interesting... yesterday the stock closed below the 50 day moving average. It had traded below there intraday for a few days before hand but always closed above that level (which could still be construed bullish) Then yesterday it closed below (which is bearish) Than today its up 8%. Makes no sense from technical action but if everything were about technicals, the market would be a simple place.
Ironically Potash chart never degraded at all, just Mosaic. Making you "think" something was happening specific to MOS.
Ah the stock market, always full of mysteries - we will never know the true story of what hedge fund was pressing what bet or what investment bank was manipulating what ... they all know how technicians trade so this could prove to be a great shakeout. I will be curious to see what the Citigroup analyst says tomorrow if its all proven to be "wrong" :) Probably "well I did my job, I got my clients in at under $100"
what a rigged game :)
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