Why One Coal Mining Name Rocketed 20% in July
Units of Alliance Holdings GP L.P. (NASDAQ: AHGP) rose 20% in July. Alliance Holdings is the general partner of coal mining partnership Alliance Resource Partners L.P. (NASDAQ: ARLP), which is one of the best performing coal miners in the United States. That price gain came in just a couple of days at the end of the month, as the partnership rocketed higher on two pieces of news.
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The first bit of news was the announcement of a distribution increase of nearly 33%. That's a huge bump, and came after Alliance Resource Partners suggested a distribution increase was likely when it reported first-quarter results. Alliance Resource Partners increased its distribution by roughly 14%. Because of the relationship between general partners and limited partnerships, Alliance Holdings' distribution is leveraged to that of Alliance Resource Partners. But interestingly, Alliance Resource Partners units were only up 7% in July and barely moved on the distribution news.
Source: Fool.com
Alliance Resource Partners Stock
Alliance Resource Partners is currently one of the favorites of our community with 7 Buy predictions and no Sell predictions.
Based on the current price of 3.96 € the target price of 25 € shows a potential of 531.31% for Alliance Resource Partners which would more than double the current price.
