Too much leverageThe following article brings up a good point on Patriots activity:
https://www.stockhouse.com/Columnists/2008/June/2/Coal-company-growing-as-its-shares-surge
the company has been very active in the past 2 quarters with its M&A and capital acticity. The convertable notes Patriot issued raised 193 million, at a 3.25 rate, which is quite low. The company will use this to pay off debt aqcuired from Magnum.
However, even with this debt reduction, the company is still masively leveraged, at a debt-to-equity of 13.77. Although Patriot is riding the waves of good fortune in the booming coal market, i doubt that this company will be able to survive a pullback in energy prices, which would hurt is revenues, and ability to pay its interest expenses.