This week I bought some PCX (Patriot Coal Corp NYSE). I am averaged in at 4.71Patriot Coal Corporation is the third largest producer and marketer of coal in the eastern United States, with 15 active mining complexes in Appalachia and the Illinois Basin. The Company ships to domestic and international electric utilities, industrial users and metallurgical coal customers, and controls approximately 1.8 billion tons of proven and probable coal reserves.
Patriot Coal Results for the Quarter and Year Ended December 31, 2008
Highlights:
Revenues up 113% in fourth quarter and 54% for full year
Significant progress on Magnum integration and mine rationalization plan
Idling of Jupiter, Remington & Black Oak mines
Expected 2009 sales volumes between 36 and 38 million tons
Reduced 2009 capital expenditures to reflect market conditions
I know Obama is against coal due to the environmental effects, however we have to realize that it will take a while for his renewable energy sources to come to fruition in a meaningful sense. America has plenty of coal and it is a cheap power source and China is building coal plants out the ying yang.
Bottom line is that I did not have any coal stocks in my portfolio and the fundies looked pretty good on PCX so I started a position this week. Plus it has been beatin down like a dirty red headed step child.... (no offense to the ginger kids)
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