Wednesday 16 May 2012

PCX - From bad...to really bad

Patriot Coal (PCX) had a really bad trading day yesterday. News of a potential customer default sent its stock collapsing, and larger concerns about the coal sector added to the woes.


PCX, daily



Summary

The horror continues for PCX. I shorted this last July at the grand level of $24. The basis then was that it was a loss making coal company....one year later...nothing has changed.

I think eventually it'll be a fun speculative buy for me, but only at sp'1100, and then maybe PCX will be around $2, or even in the mid 1s. As it is, there is nothing enticing right now about this dirty coal company.