Massey Energy On Sale

Massey Energy (NYSE:MEE) is the nations top six coal producer based in Richmond, Virgina.  It was also known by most people as the owner of the famous West Virginia Upper Big Branch coal mine that exploded in April 2009 and killed 29 miners.  In late October this year the company got to the spotlight again as The Wall Street Journal revealed the coal mine operator is thinking of putting itself on sale.  The Upper Big Branch incident  cost the company quite a bit with legal cost and repair.  Even inspector visit forced Massey Energy to conduct safety training as the visit came up with violations.


Since October shares of Massey Energy have gained more than 60% and is currently trading at $51 per share.  Despite increase in revenue for three consecutive quarters, the company turned into net loss in 2Q and is still losing money in the latest 3Q report.  The technical chart still points to the upside with 50 day moving average on top of 200 day moving average on recent stock rally.  Although the company has yet to be sold analyst are expecting the retirement of CEO would increase the chance for the sale of the company.