Massey stock plunges 10%

masseyshares.pngShares of Massey Energy plunged about 10% Monday and the stock has dropped about 40% since a deadly West Virginia mine explosion in April. By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- Shares of Massey Energy plunged about 10% Monday after a report surfaced over the weekend indicated the coal mining company may face a criminal investigation.

Federal prosecutors are investigating possible "willful criminal activity" by "directors, officers and agents" of Massey subsidiary Performance Coal at the Upper Big Branch coal mine where an explosion killed 29 workers last month, The Wall Street Journal reported on Saturday.

The April 5 explosion was the deadliest U.S. mining disaster in 25 years.

Shares of other mining companies took hits Monday as concerns about an economic slowdown in Europe dampened demand for energy stocks. But while shares of coal giant Peabody Energy (BTU, Fortune 500) fell about 5% and Patriot Coal (PCX) fell nearly 8%, Massey (MEE) took the biggest hit.

Pearce Hammond, director of institutional research at Simmons and Company International, said investors are probably spooked by the report about the criminal investigation as well as reports of more troubling news ahead of Massey's annual shareholder meeting Tuesday.

A Bloomberg report on Monday claimed that some large Massey shareholders will seek to block the re-election of three company board members at the meeting.

Another report by the Wall Street Journal on Monday said a congressional committee will vote on Wednesday on whether to give the House Education and Labor Committee deposition power to call witnesses in for questioning on the case.

Congress is investigating the mining disaster, and as part of the probe, Massey CEO Don Blankenship is scheduled to appear before a Senate committee on Thursday.

That marks a busy and stressful week for the company, Hammond said, and investors may be pulling out of Massey stock until it becomes clearer how much more legal risk it may face.

"We need to figure out what happened. I think the one problem Massey has right now is people jump to conclusions," Hammond said. "We have to wait and see. I don't want to cast doubt on the company at this point."

Massey shares have fallen about 40% since the mine explosion on April 5. To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,828.24 0.49 0.00%
Nasdaq 4,791.63 4.31 0.09%
S&P 500 2,067.56 -5.27 -0.25%
Treasuries 2.19 -0.04 -1.79%
Data as of 1:28pm ET
Company Price Change % Change
Kinder Morgan Inc 41.35 -0.97 -2.29%
Halliburton Co 42.20 -5.14 -10.86%
General Electric Co 26.49 -0.38 -1.41%
Bank of America Corp... 17.04 -0.07 -0.41%
Apple Inc 118.93 -0.07 -0.06%
Data as of 1:02pm ET

Sections

OPEC wants to squeeze U.S. shale oil producers by forcing prices even lower. It's a move even Tony Soprano would be proud of. More

Colorado's marijuana stores are following the lead of other retailers and offering big deals on pot. More

Natalie's Cakes and More has raised $84,000 through GoFundMe after protests trash store. More

Retailers are promising big deals this Black Friday, but are the savings actually worth the shopping mayhem? Test your deal-sniffing skills. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.