The disconnect didn't take until late in the year to unwind. It took 6 days. I find it funny, the idea that you can't find good values out there. You have to take some risk, but SXCP at $6 or whatever? Just stupid. I'd much rather have bought SXCP at $6 than TSLA at $250. Yet people couldn't give SXCP away and they are waiting in line to buy TSLA.
No sane person is short a stock that pays a 30% dividend, as you have to pay that dividend yourself. The short interest on SXCP is only 1%. The swings in SXCP have not been predictable. It may be that a fund is buying today. In general the end of the world was priced into the stock. It's dawning on people that the end of the world is not about to happen here. That SXC (the corporate parent, not the LP) is divesting it's coal assets is not hurting. Analysts have raised their earnings estimates for SXC for this year and next. Steel stocks also continues to be strong and analysts are raising earnings estimates for steel. It all makes SXCP look better and better.
SXCP is dependent on the success of the steel industry in the US. So what has X done since the first of the year? Well it's doubled. What has SXCP done? It's gone down slightly. There is a complete disconnect between the expectations for steel. Look at X, and the market is saying things are getting better. Look at SXCP and the market is saying bankruptcies in steel. SXCP should have participated in the move in steel so far this year. I suspect there is a huge rally to come, but it might not be until closer to year end when SXCP makes progress on paying down their debt and the dividends steadily arrive. Crazy. This is a high risk stock, no question. But we are more than compensated for the risk taken with the 33% dividend. I cannot think of a stock *ever* that has a dividend over 15% where analysts are predicting decent earnings for this year and next. 33%? If might be unprecedented, except during a market crash ala 2008.