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.
Image source: Getty Images
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