Another piece of evidence against EMH: Coal commodity spot and futures prices have been moving up for several months, with coal stock prices naturally following, but today one analyst raised his price targets on several met coal stocks based on higher expected coal prices, and almost every US coal stock rose another 3-10%. (See BTU, CEIX, ARCH, AMR, HCC.) But there was no new private information released or any change in fundamentals compared to yesterday (futures markets are essentially flat). It’s just a pure change in valuation.
Even more damningly, CEIX is up 3.5% (was up 5% intraday) even though it was not upgraded by this analyst, due to the fact that it mines thermal coal and the upgrades were based on higher met coal prices.
Another piece of evidence against EMH: Coal commodity spot and futures prices have been moving up for several months, with coal stock prices naturally following, but today one analyst raised his price targets on several met coal stocks based on higher expected coal prices, and almost every US coal stock rose another 3-10%. (See BTU, CEIX, ARCH, AMR, HCC.) But there was no new private information released or any change in fundamentals compared to yesterday (futures markets are essentially flat). It’s just a pure change in valuation.
Even more damningly, CEIX is up 3.5% (was up 5% intraday) even though it was not upgraded by this analyst, due to the fact that it mines thermal coal and the upgrades were based on higher met coal prices.