JRCC starting to break to the upside

[SmartMoney101]

funds have been adding to their stake in this one, down huge but has found a base and is starting to break to the upside. Smaller float and large short position makes it apt to be a quick mover.

[aiki14]

What's the catalyst for the upside break? Hedge Fund Pirate Capital refers to its investment in jrcc as a "shipwreck" in it's letter to investors.
S&P downgraded it due to lowered 06 and 07 guidance and cut their credit rating. Moody's and Raymond James also downgraded them in aug.
Seems to me the only people who would tout these guys are folks stuck with long positions looking for an escape.

[SmartMoney101]

This is my first post on it, I have shares from sub 15 levels. Pirate Capital already changed the board of directors and are bonefied turnaround specialists. and here is your catalyst. You can doubt and watch me get paid if you like.

FO 09/05 16:11 JRCC Michael Cook Asset Management reports a 8.01% stake in James River Coal-JRCC

[aiki14]

Well you're up about 1.5% today if it holds. But I'd still like to know what event led you to be bullish on this yesterday, and was the Cook stake an increase or decrease in their position and when did they take it. And I'll watch and see what happens. good luck

[SmartMoney101]

I actually like the way the chart is basing for the last month or so while big boys are buying, I also owned PWEI while pirate capital took that to the moon. So I am very familiar with them and their dealings. Also, the 52 week high here is over 50, which leaves a ton of retrace room. It also has a 28% short position. I think it can go over 20 this month with no problem.

[aiki14]

One more thing, morningstar from yesterday shows no single entity holds more than 3.81% of the outstanding shares (as of 31 jul).

[SmartMoney101]

morningstar is wrong, pirate capital owns over 10% of the outstanding shares and that Cook Asset Manangement 8% stake was yesterday. They may only be listing tradition brokers/institutions but the stakes are both filed with the SEC and easily verifiable. You can look up them pretty easily independently from morningstar.

[aiki14]

I'll accept your word on that stuff, and I'll grant they are good indicators for an upside move in general. I even grant the chart looks to show accumulation over the last three weeks. The Cook buy is the type of thing I would say is a catalyst.
I am not real bullish on the sector and with the guidance still am resistant to a buy here. You defend your position well, even if I disagree with it. I might have been overly accusatory in my first post but I find it a bit crass to advertise a competing website in ones signature, maybe I should let Tierry make those decisions and pay attention to the stock stuff.

[SmartMoney101]

I hope I didnt come across as combative, but I just wanted to be sure that you realized that I am not some pump and dump guy looking to unload on the unsuspecting. Good luck to you in your trading.

[SmartMoney101]

Popped up then got smacked down , bad market day. Note of interest, A JRCC Director decided to get on board today, he filed for 30 grand worth (2k shares) at 15.07

http://www.sec.gov/Archives/edgar/data/1276913/000118811206002774/xslF345X02/edgar.xml


Not big money by any means but people dont like losing money, even small amounts, hopefully he thinks as I do about the future of the stock in the near term.