They issued stock at 23.50 per share to the markets just one yr ago and spent 400 million of it for the aquisition...I don't think any shareholder would sell out for 9 bucks...give me a break if anything, double it and that's still cheap..
Do you think it's possible for the market makers to keep this down in the $6 range until the short interest has reduced enough and then they make the announcement that the aquisition is going to happen?
The only problem I see with the credibility of this "rumor" of a buyout of JRCC is this: 1) Most of the short interest obviously is institutional, NOT guys like you and me. IF the rumor were pulsing through Wall Street, the ADV would certainly be much higher than it is now, i.e. those that are indeed short would want to get the heck OUT, and NOW, 2)it appears to me that JRCC is merely deviating roughly in line with the other coal stocks, albeit holding up a little better on some days, but doing worse on others. If a takeover happens near 10 bucks: FABULOUS. However, I sure wouldn't be holding this thing just because of that "rumor" of a buyout. Rumors happen all the time. I DO like you idea of selling half, if you can get out (i.e. to minimize your risk) at breakeven, then start trading opportunistically. I am doing a little trading on the side in one account, but holding in the other. I am WAY down right now. My basis is about 7.30 ish. But, as I previously posted, I am holding for a nice PROFIT. NO need to sell this at a LOSS when it is already selling at about 45-46% of BV.