The coal train express is leaving! And it's taking natural gas along for the ride!
I just wanted to ask those that were bearish and who had piled unto the shorts in PCX, one simple question.
It looks like PCX didn't follow your script! They made money, and they worked out their terms with their lenders.
What a surprise!
Not here though.
PCX is now 7.68, up 256% from where I touted it a 3. In all of seven weeks! (My other coal spec NCOC, at 1.1, is now 1.84 up 74% in six weeks.)
And PVA, which, is a coal and natural gas play, finally is breaking out. I touted this five weeks ago at 11.74, and telling you it wasn't a sexy play, but it would make you money is now at 15.93, up 36%. She's now a hot number!
But who likes going to a party early? It's best going there when everybody has already had something to drink, and the pickings are easier. And that's how it is with the coal and natural gas stocks.
The momentum boys just discovered the hot new hangout! Watch your women! In this market, the bears are paying for their excess/ex-sex!
Look at the action in Alpha Natural Resources (ANR 23.37) which broke out with a vengenance. That stock is ready to ramp, and there was great action in the June 30 calls at .80 cents. A couple thousand of those were bought, as the boys are getting ready to juice this name.
James River went up 4 Friday on earnings to 18. Do you think Wall Street is going to discriminate? Didn't BTU miss it's numbers? And didn't that ramp 10% Friday?
Friday, you also had tremendous action in natural gas. And if you want a few specs in gas, here's a couple. PetroQuest Energy (PQ 3.55), just broke out on the charts, after sitting for the past month. Now you have improving fundies with good technicals. That's a hot number!
GMX Resources (GMXR 12.26) has been on fire the past few days, not even giving anyone a dip to get in. Who wants the dip anyway? It's another name with a tight float, and too many shorts all over it. And who is going to short it before earnings next Thursday? You get a free pass! If you're a hedge fund, you take the May 12.5's at .90 cents, and then goose the stock.
They are the leveraged play on the Haynesville, and every quant in the country is blowing up shorting those plays that are leveraged.
So why would it be any different here?