James River Coal Company Skyrocketing 13% On Asset Buy (JRCC)

James River Coal Company JRCC shares are skyrocketing this morning, up over 13% to $22.89 after the company announced it would be buying International Resource Partners LP, as well as Logan & Kanawha Coal Co. LLC for $475 million in cash.

The company has effectively doubled its size. "James River is transforming itself by basically doubling the size of the company and significantly expanding its met coal presence - all at a very reasonable valuation," Brean Murray Carret analyst Jeremy Sussman said in a note to clients.

CEO Peter T. Socha was positive on the deal, as it looks to expand its offerings of metallurgical coal and gives the company a greater presence in the seaborne coal markets.

The company also reported earnings that fell short of Wall Street estimates. The company reported earnings of 14 cents per share on revenues of $162.1 million. Wall Street expected earnings of 30 cents per share on revenues of $169.4 million.