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James River Coal -4.7% AH as it delays 10-K, can't make interest payment

  • James River Coal (JRCC) -4.7% AH after announcing that it is filing to delay its annual 10-K report because of accounting and reporting issues related to its strategic review process and previously announced adjustments to its mining operations, including the closure and idling of mines.
  • JRCC says its auditors have said that if they were to deliver an audit opinion based on current conditions, the opinion would contain a going concern qualification.
  • Also says it is unable to make interest payments on $230M of 3.125% convertbile senior notes due 2018.
Comments (13)
  • Richard0623
    , contributor
    Comments (142) | Send Message
     
    Race against the clock.

     

    Can't see a single reason why someone would jump in before BK to buy them. If they wait a couple months, they can pick apart JRCC for whatever they want at a massive discount without taking on significant debt obligations
    17 Mar, 06:24 PM Reply Like
  • Patent News
    , contributor
    Comments (1321) | Send Message
     
    sounds like the end is near for common stock holders and there will be a massive sell-off tomorrow! remember someone asking about this one they had profits but got greedy!!
    17 Mar, 06:27 PM Reply Like
  • Tactical111
    , contributor
    Comments (190) | Send Message
     
    That was me. I missed 4 money making swing trades for a total of 130 % gains but instead lost over 40% over about 10 mos with JRCC. JRCC was a major learning experience for me that has helped me immensely going forward. "Experience brings knowledge; bad experience brings wisdom." :-)

     

    This is why I continue to watch JRCC with morbid curiosity.
    17 Mar, 08:23 PM Reply Like
  • Continental Kid
    , contributor
    Comments (202) | Send Message
     
    put this piece of junk out of its misery.....the entire space will be drug down further if they are allowed to reorganize......they will sell coal at below cost just to keep a cash flow...not good for anyone.....
    17 Mar, 09:55 PM Reply Like
  • sethmcs
    , contributor
    Comments (3281) | Send Message
     
    This was not unexpected. JRCC BK might be a sign of market bottom. Coal inventories are below the five year average at power plants according EIA. CSX said they are shipping more coal and the spot price of coal is inching up in every region except CAPP coal.
    17 Mar, 10:01 PM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (282) | Send Message
     
    Platts was reporting that utilities were shutting down coal plants due to supply chain issues. You believe that!!!! unbelievable... they failed to replace inventories before the deep freeze causing coal prices to drop unnaturally low and then when the railroads can't deliver enough coal to replace inventories they shut down and rely on more expensive nat gas. coal cannot catch a break
    18 Mar, 12:37 AM Reply Like
  • wigit5
    , contributor
    Comments (4102) | Send Message
     
    Blue,
    It's really odd to read this Platts I consider somewhat reputable however I have a connection somewhat close to the coal sector who said utilities mostly are staying the course with inventories at levels they like or just under what they want... but nothing so pressing as running out of coal to burn. Do you have a link to the Platts report?
    18 Mar, 02:33 PM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (282) | Send Message
     
    I can't get it now. it asks me to login to get anything beyond the top five stories on coal. it was posted within the last week if you have a platts account. let me know if you find it. it talked about rail congestion.
    19 Mar, 10:58 AM Reply Like
  • Blue Horshoe love Anacot Steel
    , contributor
    Comments (282) | Send Message
     
    a spokesperson for one of the utilities admitted it was less profitable to use nat gas but they were gonna do it anyway
    19 Mar, 10:58 AM Reply Like
  • coal baron
    , contributor
    Comments (3) | Send Message
     
    I have half my retirement in this company, I'm kinda stressed right now! Not good news at all, all I can hope for is a merger or major buy out at this point! Lost hope, but that is all I have now!
    18 Mar, 09:44 AM Reply Like
  • 6151621
    , contributor
    Comments (1174) | Send Message
     
    I wouldn't hope for buyouts. The market isn't there--in this environment buyers would better wait for bankruptcy so they can take the coal without worker liabilities (or greatly reduced liabilities).
    18 Mar, 10:21 AM Reply Like
  • wigit5
    , contributor
    Comments (4102) | Send Message
     
    Um get out... save everything you can... this isn't going to end well for anyone who owns common equity. Look at Patriot...

     

    I'm really sorry to hear half your retirement is in this company someone gave you poor advice in that department. Best thing to do now is to move out of this and start to rebuild.
    18 Mar, 02:34 PM Reply Like
  • wigit5
    , contributor
    Comments (4102) | Send Message
     
    even in bankruptcy they have mostly eastern coal assets and anyone buying them in this market would just be adding liabilities to balance sheets that can't afford them.
    18 Mar, 02:35 PM Reply Like
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