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Massey Energy Hammered Again Today

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Massey Energy (MEE) has naturally been weak since the mining explosion. The 30% drop seems excessive at this point, but its broken the 200ema so we're staying clear for now. The Transocean (RIG) drillship explosion hasn't helped remove the stronger regulation fear.

The Cumberland purchase makes MEE a lot more appealing as well. That access to 5M more tons of met coal was a huge purchase, but for now it'll be completely ignored while MEE deals with the legal and regulatory issues.

It's also highly possible that several funds are unloading the stock at month end so that it won't appear in the list of investments.

With the Chicago PMI hitting 63.8 today this seems like the ideal stock for a much stronger industrial environment. For now we'll just keep our position in Alpha Natural Resources (ANR) and wait for the best entry point in MEE.


Edit 10:40am: Now we see the news stories about the bribery probe by the FBI. Clearly a few people knew about this prior to the headlines.

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