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) have climbed out of the mine a little dirty, but alive and well, and are trading 10% higher today.
So what: Energy is a hot investment on Wall Street today as investors bet that Europe isn't going to collapse and the world isn't going to end. Oil has shot higher as a result and coal miners are following suit as the energy sector is in vogue again.
Now what: It seems like the news for coal producers has been terrible for the last couple of months with competitors Alpha Natural Resources (NYS: ANR) , Arch Coal (NYS: ACI) , and Peabody Energy (NYS: BTU) all falling as energy prices fell. Coal isn't directly related to the price of oil, but economic health, especially growth in China and other developing countries, will have a big impact on future profits. That's why coal stocks are trading higher today on hopes that the worldwide economic picture isn't as bad as feared. Of course, that sentiment could change tomorrow.
Interested in more info on Patriot Coal? Add it to your watchlist byclicking here.
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.