ThinkFirst

It's Not Too Late to Buy Coal

Something is odd about the move in PCX. Could be a huge short-squeeze.

But, be careful here. On May 28, it sold $200 million worth of convertibles with a conversion price of $135.34 and the stock was at $96.67 the previous day. At some point, those buyers of converts will lock in their profit by shorting the common. Plus, PCX will be issuing more shares soon to use in its acquisition of Magnum. The sellers of Magnum will want to lock in their profit by shorting the common of PCX even before the deal closes.

Maybe, others can add more to this.