Message #1 From:
TheCorrectCall Date: April 20, 2008 08:49:40 PM
Analysts raising expectations on MEE
Coal has been hot and our next EPS pick is Massey Energy (MEE)
Massey Energy enjoys a strong market position as America's 4th largest producer of coal by revenues. MEE will release its 1st quarter financial report card before the market opens on Friday April 25th.
The Correct Call expects MEE will post numbers better than expected $0.32 per share and in all likelihood will guide expectations higher for the remainder of the year.
Recently MEE’s management announced their solid fundamentals would only improve with an increase of at least 8% in the price of coal; up from an average price of $54-56 to $61 to $63.
As a result, 14 of the 17 analysts following MEE raised their expectations for the rest of ’08.
Again, we recommend the stock versus options here as the volatility is way too high to warrant the extra risk of owning options; just not enough bang for your buck.
