Wednesday, June 9, 2010

The mine-safety poster child (MEE)

What is the latest news on Massey Energy, the troubled mining company? Three points:

1. At the annual meeting on May 18th, the three incumbent directors up for re-election won. They remain on the board.

In a display of hubris, though, the company immediately announced its directors had been "overwhelmingly" elected. The numbers don't bear that out.

2. What has been happening with the price of Massey stock lately? It is almost enough to say that it can be and has been bracketed with recent performance by BP and Toyota.

3. On the other hand, there is always the possibility that it has fallen too far. Short interest is high, which means that should an upward tick begin, a rush to cover could give the upward move momentum.

Nothing I say here is to be interpreted in any way as investment advice.

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