Patriot Coal Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Patriot Coal (NYS: PCX) are up 15% on buyout rumors circulating through the industry.
So what: The rumor is that Anglo American is interested in buying Walter Energy (NYS: WLT) , Patriot's competitor, setting up a buyout frenzy. This would continue consolidation that went on this summer when Alpha Natural Resources (NYS: ANR) and Arch Coal (NYS: ACI) completed large acquisitions.
Now what: Rumors are a lot of fun if you own shares, but right now there are no real facts behind today's move. TheTimes of London helped fuel the fire of a Walter Energy buyout rumor and Patriot Coal's shares came along for the ride. I would be careful buying on rumors because if they turn out to be false, shares will be right back where they started.
Interested in more info on Patriot Coal? Add it to your watchlist.
At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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