RE: Patriot ResultsHuge growth; Q was great looking forward to earnings and massive production increase.
Increasing metallurgical production to over 8 million tons in 2011, with expansion to over 11 million tons by 2013
Still lots of coal left for future met flood price, and sold some well above cost.
Bullish pennant breakout from 24 suggested 11-12 near term target...like 1-4 weeks to 35-36 per share. breakout above 27.20 just confirms this further.
In 2013 PCX is projected to have about the same production as MEE has this year....MEE just got bought out for ~8 billion.
This suggests that current fair trading value is 35-50 per share
and current buyout is at 45-65 per share
If they execute by 2012 the buyout level could be 70-80 per share, and trading at 60-70 per share.
It will be volatile but IMO PCX heading to 35 to 45 trading range within 2 months....probably need the market to completely implode or coal markets to do the same in 2 months to not see this range. Only thin that matters now is met coal contract price they still have 3 to 3.5 million for this year and 8-9 million next year unhedged....they just recently sold tonnage for 155 per ton, which is 55 to 75 per ton above cost.