Patriot Coal (PCX -28.6%) plunges and is pulling all coal stocks (KOL -1.8%) lower, due to a...

This news story has 10 comments:

Register or Login to rate comments »

rjj1960 Comments (1028)
 
My point for over 22 years, the mgmt could put the company up for sale, they only have 2 billion tons of coal. Instead, they would rather ride the stock to zero, screw the shareholders just to hang on to their bloated jobs/salaries. Most public companies are run for the mgmt, shareholders get the shaft.No word from the company as shareholders get skinned. I hate to say this, wall street has destroyed main street.
22 May 2012, 12:26 PM Reply Like

untrusting investor Comments (9879)
 
So true, and it isn't just the coal companies .... it's most of the publicly traded equities.
22 May 2012, 05:38 PM Reply Like

mix Comments (62)
 
Isn't the general consensus that some consolidation in the coal industry is needed? Why would PCX rather file for bankruptcy?
22 May 2012, 12:29 PM Reply Like

Windsun33 Comments (3924)
 
Only way I can see this getting better is if one of the other mega-miners makes a buyout on it. For a speculative play, it has a lot of upside possible, but it could also go to zero.
22 May 2012, 12:31 PM Reply Like

dinky Comments (16)
 
rjj1960's comments are increasingly true in my opinion. Look at this Facebook fiasco.
22 May 2012, 12:34 PM Reply Like

The Patriot Comments (268)
 
Coal is cheap right now. Most producers have plenty of reserves to handle demand and projected demand. No need to add unless its a GREAT deal. Natural selection weeding out the weak. Producers that dont have access to export, or have higher costs to export will hurt the most. EPA is making it rough on the coal producers and users. My guess is if a buyer stepped in, they would shut down production to reduce supply.
22 May 2012, 12:49 PM Reply Like

jjmc2001 Comments (1093)
 
I can find you millions of tons of reserves within a two hour drive of where I am sitting right now and they are worth zero. High cost, high sulfur. Just like the Patriot reserves. They operate in the areas that the smart money moved out of.
22 May 2012, 07:15 PM Reply Like

mbeauclair Comments (4)
 
why is a mismanaged company dragging an entire industry down today! look at BTU for how you should manage a coal company...
22 May 2012, 12:56 PM Reply Like

jjmc2001 Comments (1093)
 
BTU is the company that cast the assets aside that became Patriot although I think they used the term spin-off. If these assets were any good BTU would have kept them. This was a sucker bet from day one.
22 May 2012, 07:10 PM Reply Like

The Patriot Comments (268)
 
Mismanaged company ?? Matter of opinion. Im neither for nor against. PCX has had to play the hand they were dealt with their coal production. It has fallen out of favor quickly. As the sector trades so do the individual stocks. CHK is in the same boat.
22 May 2012, 01:24 PM Reply Like