James River Coal Company (JRCC)

Company

JRCC 1-year chart JRCC 1-year chart

"James River Coal Company mines, processes and sells bituminous steam and industrial-grade coal primarily to electric utility companies and industrial customers. The Company's mining operations are managed through six operating subsidiaries located throughout eastern Kentucky and in southern Indiana." (company website)

JRCC 6-month chart
JRCC 6-month chart

Buy

James River Coal had been cycling down toward touching-up with the 50-day moving average, but a nice earnings surprise has sent it up again. I was quickly out-bid, so I got only 380 shares instead of a full lot of 500.

  • Price momentum (PPO) — rising steadily since end of 2006
  • Relative strength (RSI) — rising again after a dip to neutral
  • Trend (ADX) — very strong, and buying pressure (+DI) rising sharply
  • Volume — high-volume move up after earnings

Based on technical analysis, MarketEdge calls JRCC a "strong buy" in a "strong upward trend."

Sell

gain Bottom line
14%

After two days of advances following a good earnings report, JRCC opened higher, then started to fall. When it reached the previous day's close, I pushed the sell button to lock in a very nice profit.

Follow-up

Selling was clearly premature, considering what happened today. An analyst boosted the rating, saying the stock was "poised to surge." Guess what — It surged 14%. Quelle surprise!