I am a SCOK Bull, but last week I felt more like a SCOK steer. After the earnings report yesterday, I feel confident in the long term prospects for this company. Guessing what the stock price will do on a short term basis is best left to the pumpers and dumpers. There are many factors that weigh into trading activity and many have nothing to do with the company. Overall, long term, we can sit back and wait for the stock to go up substantially. Being short this company may be a rare form of insanity.
The market is disappointed with SCOK. They have falling margins and shipment volumes pretty much across all segments. Their earnings are up because the coal market in China is tight and prices have soared. Unfortunately SCOK is not participating in that like they should, pretty much scrounging around for coal wherever they can buy it at whatever price they have to pay.
Then they have to hope that if they do finally get it together that the price of coal holds up. We need to see some execution from this company not just talk to get a rally in the stock going.