Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of James River Coal
So what: Yesterday before the bell, James River Coal announced mixed earnings for the second quarter. Revenue was $352 million, crushing expectations, but adjusted earnings per share were only $0.31, behind the $0.46 analysts expected. That led to a downgrade today from Brean Murray today, which is helping push shares south.
Now what: The market is down big today, so the move is exaggerated more than it probably should be. Yesterday's earnings miss is concerning, but the company is picking up production and expects to ship 11.6 million to 12.2 million tons this year. With shares trading below a 7 P/E multiple for both trailing and forward earnings estimates, I think this is a great time to buy in.
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