Why on earth would anyone expect ACI to go down from here? Fourth quarter earnings were not that bad and show some much needed stability into 2015. Plus, the stock is already priced for "worst case" scenario. I don't think there is much room left to fall.
I think Zack's (or someone they represent) is trying to provide room for shorts to exit. In any case I am confident we will see a much better 2015 as the downtrend has finally broken.
ACI is having a low volume trading day. That's why it is on the slow decline. The daily chart looks constructive here for the first time in a long time. If we can get a couple of more days slow decline followed by a rally through $1.22, we just might be looking at a long term 1-2-3 bottom formation being completed.
it is now clear that ACI solvency is no longer an issue. The open short interest now needs to find an orderly exit from their trade - where they clearly expected ACI to founder this year. Based on yesterdays earnings and conference call, it is now apparent that ACI has structured for survival and to subsequently prosper once the market turns. Also, their exposure to PRB pretty much insulates them from lower natgas price pressure. The short interest has been predicated on ACI not being able to survive the continued downturn. ACI's operational restructuring during 2014 has given them the legs to endure.
I am convinced that the bashers frequenting this board are not shorts. That trade is over. Rather, I believe the George Bush Loser, JimJohn's of this board are global warming activists working the playbook to do whatever they can to discourage coal investing in favor of renewable energy.
On my Charles Schwab news feed. It showed the BMO but also showed Stern Agee. Looks like mainstream pressers only wanted to publish the $1 PT because it fit their position. I really think all the pent up shorts are looking to exit and don't want the price to get away from them.