Patriot Coal (PCX) Shares Bounce; Anglo American CEO Gives Brighter Outlook, Sees Near-Term Pressure
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Patriot Coal (NYSE: PCX) shares are showing some life Thursday after being pressured over the last, well, year, on expectations that coal prices may have finally reached a bottom. The stock is now up about 4 percent, but surged as much as 8 percent earlier.
Investors in the coal sector are responding to some positive chatter from diversified miner Anglo American PLC (OTC: AAUKY) -- chatter which was bearish short-term. The company touted a bright outlook for the "other black gold." Catalysts for near-term pressure include U.S. coal demand being put on hold by low nat-gas prices, as well as the economic slowdown in China, Anglo CEO Norman Mbazima said. He still believes coal is the "underpin" of electricity production in the future.
Dow Jones noted early Thursday power demand in China which slowed from a 12 percent year-over-year gain in May 2010 to just a 2.7 percent gain last month.
Implied volatility on Patriot's shares is up 11 percent from Wednesday's close. Other coal miners like Peabody (NYSE: BTU), Arch Coal (NYSE: ACI), Alpha Natural (NYSE: ANR) and James River (Nasdaq: JRCC) are seeing more muted responses this morning.
Patriot shares were as high as $25 last July, having been hit hard by the macro growth slowdown. The stock is 95 percent off that mark.
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Investors in the coal sector are responding to some positive chatter from diversified miner Anglo American PLC (OTC: AAUKY) -- chatter which was bearish short-term. The company touted a bright outlook for the "other black gold." Catalysts for near-term pressure include U.S. coal demand being put on hold by low nat-gas prices, as well as the economic slowdown in China, Anglo CEO Norman Mbazima said. He still believes coal is the "underpin" of electricity production in the future.
Dow Jones noted early Thursday power demand in China which slowed from a 12 percent year-over-year gain in May 2010 to just a 2.7 percent gain last month.
Implied volatility on Patriot's shares is up 11 percent from Wednesday's close. Other coal miners like Peabody (NYSE: BTU), Arch Coal (NYSE: ACI), Alpha Natural (NYSE: ANR) and James River (Nasdaq: JRCC) are seeing more muted responses this morning.
Patriot shares were as high as $25 last July, having been hit hard by the macro growth slowdown. The stock is 95 percent off that mark.
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