Technically there is a little gap to fill and it really is more of a short candidate than long after yesterday's reversal.
I am surprised there was such a reaction to earnings when all these stocks generally trade as one big monolith (dollar down, commodities up) - I guess guidance did them in. But unlike some peers they are actually profitable and had revenue growth despite coal prices being much lower than a year ago. Again, I simply do not understand some of these stock movements nowadays. All I can figure out is its a momentum traders market and if your stock is in an uptrend you can report anything you want since the computers buy buy buy; if not - then you have issue because you don't have the computers on your side. A quick look.
- Shares of James River Coal Corp. fell on Monday after the mine operator posted second-quarter earnings shy of Wall Street expectations and slashed expectations for the full year.
- Earlier in the day the company, which operates mines in Indiana and Kentucky, said it turned a profit earning $16.2 million, or 59 cents per share, compared with a loss of $24 million, or 97 cents per share, in the prior-year period. Analysts surveyed by Thomson Reuters were expecting, on average, earnings of 78 cents per share.
- Revenue increased 25 percent to $171.6 million, but missed Wall Street's target of $189 million.
- The company lowered its 2009 profit expectations to between $2.25 to $2.60 per share, from a previous view of $3.30 to $3.80 per share. Analysts are looking for a full-year profit of $3.15 per share. James River also cut its production plans.
- Coal shipments from the company's mines in Central Appalachia, which accounts for about two-thirds of total shipments, fell 26 percent to about 1.6 million tons.
- The company lowered its full-year coal shipment target saying that, beyond its existing contract portfolio, at current market prices it would lose money on every additional ton sold.