and average down from there. All coal stocks are heavily shorted with no catalyst on the horizon. Easy money for shorts. China will not be back in the spot market until 4/1. They still have too much at their ports and it will take a few more weeks to clear. Short term this is not a buy, however long term looks good. If coal demand remains low for an extended period, this company is in trouble. With a high cash burn rate and not closing any mines what are they thinking. Lastly, i have not seen any insider purchases lately. Good Luck SK
<<Lastly, i have not seen any insider purchases lately. Good Luck SK >>
Yeah. Good point. I haven't either, but then again...who knows what is going on in real time. We won't know about insider goings-on until after the fact.
In any event. Once it breaks below 5 (IF it does...) I would surely not jump in with both feet. I still think margin calls will commence for any overhang remaining once the break-under occurs. Maybe buy on day 3 or 4...after than event (i.e. to allow the margin selling to be completed). I would think it reasonable that if DOES break 5, on heavy volume, a fairly deep vee to 4 would be possible. JMHO.
I am now trading financial and oil stocks again. I'll wait on coal. (And, it appears a long wait at that).
Thanks Frey. I will alert you when I buy. Thank you for your points on margin. I am fortunate to trade with my own cash. These guys have a history of buying at the lows and selling at the highs. Go figure. Good Luck SK