Patriot Coal Shares Jump Higher On Foreign Demand
Shares of Patriot Coal Corporation (NYSE:PCX) have risen in the last three days, and saw a large jump on Thursday that analysts are struggling to find an impetus for.
Coal stocks have had a hard year as natural gas prices have fallen tremendously, making the fuel a more economic source for companies. However, overall, coal has shown resilience in recent weeks as foreign demand picks up, according to a report from Five Star Equities.
"We project they will reach a record 285 million tons in 2012 as the country increasingly looks to the seaborne coal markets," Peabody Energy CEO Gregory Boyce said at a recent conference. "We expect global metallurgical coal use to increase 25 percent by 2016, translating to an additional 250 million tons of demand growth, with the bulk of increases led by China and India."
However, when Patriot shares surged 30 percent on Thursday, analysts were scratching their heads as they looked for any news that may have led to the jump. This, according to Seeking Alpha, is evidence of a short squeeze.
As Patriot continues to climb, it may be advisable to keep an eye on insider trading reports.
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