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James River Coal (JRCC +30.1%) pushed higher all session after posting a Q1 loss that...

James River Coal (JRCC +30.1%) pushed higher all session after posting a Q1 loss that wasn’t as big as expected, but there's no apparent explanation for the stock's final-hour explosion on heavy volume. Some in the Twitter universe ruefully note Patriot Coal spiked just before declaring bankruptcy. Briefing.com reports JRCC debt is trading at distressed levels.
Comments (8)
  • wigit5
    , contributor
    Comments (3974) | Send Message
     
    If they declared bankruptcy it would explain why the better than expected report from them isn't really helping the rest of the coal sector.
    1 May 2013, 03:57 PM Reply Like
  • cfb5006
    , contributor
    Comments (69) | Send Message
     
    I'm going to guess that they wouldn't declare BK right before a potential them coal recovery, and no immediate bonds due. Patriot had bonds due that they couldn't pay.
    1 May 2013, 04:02 PM Reply Like
  • nemonemo
    , contributor
    Comments (309) | Send Message
     
    SA editors got burned. That explains why this article showed up.
    1 May 2013, 04:15 PM Reply Like
  • convoluted
    , contributor
    Comments (1837) | Send Message
     
    ACI also spiked-perhaps related to what the HFT folks thought about union negotiations-But, these stocks have spiked before-on no news.
    Note that ACI opened down, stabilized and then rocketed up. Suppose you're the bookie and a client is up $50,000 on naked calls. It wouldn't take much to make a weak hand think twice about pocketing half that amount-even though the net $25,000 was taken with a lot left in premium. And/or some fund with enough cash sees the status, sells puts and buys calls-and then buys a boatload of shares.
    This happens about once a week-so I trade iron condors or various spreads. You just take what you're given, and patiently wait for the pendulum to swing back the other way. A fun game. I have a longer term LEAP position, which is bullish, as the world will use coal for another 217 years-give or take.
    1 May 2013, 04:22 PM Reply Like
  • nemonemo
    , contributor
    Comments (309) | Send Message
     
    SA editors, you guys are terrible. The guy you quoted from Twitter asked everyone to sell bank stocks at double bottom. All of those bank stocks doubled.

     

    Same guy asked everyone to sell GMCR at $18. Now 50+. Shame on SA editors.
    1 May 2013, 04:27 PM Reply Like
  • ksteiner
    , contributor
    Comments (26) | Send Message
     
    Uhh it spiked because of better than expected results.
    Nice job insinuating bankruptcy which was never mentioned.
    1 May 2013, 10:28 PM Reply Like
  • ksteiner
    , contributor
    Comments (26) | Send Message
     
    BigMike / My two cents: I remember that . It was trading in the 2 -3 dollar range and spiked into the teens.
    I'm not saying they're in great shape but writers please save the rumors
    until you can prove them.
    1 May 2013, 10:40 PM Reply Like
  • laterre
    , contributor
    Comments (373) | Send Message
     
    Capital Structure 101

     

    When a company's debt is trading at severely distressed levels--in this case .30 on the $--the bonds are pricing in a bankruptcy. This is not an insinuation, it's an empirical fact. For the thick-headed longs among us, that means that the people who are ABOVE you in the capital structure are pricing in a bankruptcy and a 70% haircut. You own only what's left over after paying them.

     

    I'll let you do the math and figure out how much this makes the common equity worth...
    2 May 2013, 11:25 AM Reply Like
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