Bankruptcy News Killing Coal Miners (PCX, ACI, BTU, KOL, JRCC)
Patriot Coal Corporation (NYSE: PCX) was halted on a major downside move. Bloomberg has reported that a bankruptcy filing is said to be coming as soon as today. The headlines on the DJ broad tape showed a halt for a single-stock…
This is a company we have been worried about for quite some time, but the implication is how bad this can hurt the rest of the coal sector. Shares of Patriot are down 35% at $1.42 against a 52-week range of $1.02 to $24.99 on the day. The Market Vectors Coal ETF (NYSEMKT: KOL) is down almost 4% at $24.36 against a 52-week range of $22.99 to $50.62.
Arch Coal Inc. (NYSE: ACI) is now down almost 8% at $6.56 and Peabody Energy Corp. (NYSE: BTU) is down almost 5% at $23.68.
James River Coal Co. (NASDAQ: JRCC) is much smaller at $111 million in market value, but its stock is now down over 18% at $2.87 on the day.
Pain today, pain tomorrow.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.