After 29 miners employed by Massey Energy CEO Don Blankenship died in an explosion of a West Virginia mine last week, there has been increasing scrutiny of Massey’s prioritization of profits over safety. Last year, Blankenship proclaimed it was “very difficult” to obey “nonsensical” safety rules. In 2001, Blankenship said he “doesn’t pay much attention to the violation count,” and a few years later, issued a memo to employees telling the ignore any order – including safety – except to “run coal” because “coal pays the bills.” He even said mine safety regulations were “as silly as global warming.”
So this morning’s news from the S&P stock exchange should be music to Don Blankenship’s ears. Massey’s stock has been upgraded to a “buy” because the accident should be “immaterial” to Massey’s finances.
Massey Energy on Monday drew an upgrade to buy from hold at S&P Equity Research, while analysts cut their 2010 earnings estimate by 7 cents a share to $2.55 a share on production losses and costs following an explosion that killed 29 miners. “We believe that the financial impact of the Upper Big Branch mine tragedy to Massey Energy will be immaterial,” S&P said in a note to clients. “Our opinion is based on our analysis of industry mining accidents, Massey’s indemnification to litigation via insurance, and our belief that the company has ample capacity to mitigate most of the 1.6 million tons of production that was expected to be sold from Upper Big Branch.”
This is the bet that Blankenship made with the lives of 29 miners: that he could risk their lives without risking his profits. Richard Trumka called this disaster “the inevitable result of a profit-driven system and reckless corporate conduct.” He couldn’t be more correct. And Don Blankenship couldn’t care less.
Addendum: Secretary of Labor Hilda Solis has called for a moment of silence at 3:30pm Eastern today for the miners and their families.
UPDATE: Maybe it’s not all rainbows and sunshine for Blankenship. The New York State Comptroller Thomas DiNapoli, who controls $14 million in Massey stock, wants Blankenship out as Chairman and CEO.
New York state Comptroller Thomas DiNapoli is calling for the resignation of Don Blankenship, the chairman and chief executive of Massey Energy Co., the mining firm that lost 29 miners to a deadly underground explosion last week.
This isn’t simply a case of New York politicians passing judgment on other areas of the country. It turns out that the New York State Common Retirement fund, which Mr. DiNapoli manages, owns more than 300,000 shares of Massey Energy worth more than $14 million.
DiNapoli previously led a successful shareholder effort to reveal the names of Massey’s board members; it would be satisfying him to see him organize his allies to force out Blankenship from Massey.



37 Comments









Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About Work in Progress
Would the stock be upgraded to “buy” if the workers all walked out in protest? I don’t think Don Blankenship (worthless individual that he is) is going to get down in there himself and do any mining.
I doubt you will see upgrades from any of the better-respected stock analysts.
It’s absolutely true that Massey has insurance to cover normal accidental deaths, so it shouldn’t affect the long-term financial health of the company (all big companies have this). But if Massey were to be proven to be grossly negligent, then it’s another ball game altogether.
Also, I wonder what the basis is for the analyst to say that Massey can easily produce an addition 1.8 million tons of coal? Is there a secret coal mine out there somewhere?
Seems like negligence that can easily result in deaths would be taken much more seriously by the law. Oh, I forgot. This is where we all get our electricity. I get it now.
Sell the stock. Duh.
This is a WallStreet Pump the dying stock job. “Our opinion is based on our analysis of industry mining accidents,
Yes analysis of accidents during the Bush Administration nobody knows how Obama will react but no GOPer would expect him to be al easy as Bush was.
I couldn’t help but notice, when noticing the picture of the Massey private jet at Yeager Airport,named after General Chuck Yeager.
What a contrast in courage and leadership between Yeager and Blankenship. Yeager was from that area of West Virginia.
After being shot down in WWII in France, Yeager elected to stay and fight with the French Underground blowing things up and killing Nazi’s (kind of like in the ‘Inglorious’ movie)
Blankenship, coward, douche, POS.
sorry O.T.
Did not know that about Yeager, thanks.
Sure and the insurance companies love to payout money in a timely fashion. Tell me Wallstreet does not believe the insurance companies books after the AIG bailout.
What does this mean? The boards of public companies are public, aren’t they?
Or do I have some quaint, outdated image of how shareholder-owned corporations operate?
Obama bailed out the insurance companies with our cash. Does Obama want to risk more coal mines needing insurance company cash?
Face it WallStreet who is more important the insurance companies or a coal mine? The best way for the insurance companies to avoid payment is if the owner is found to have acted illegally.
We will see how this matter plays out but if you just look at dollar signs then this stock should be toast.
A public corporation? then yes
I agree with this.
You cannot pull coal out when the methane is venting. Even after they pay off the families, their costs are headed north.
It would really decrease the damage to the atmosphere, if we could compel anyone digging/drilling into the earth to capture all that methane and burn it into electricity. CO2 is a lot less damaging of a GHG and the electricity has a wholesale value to the entity doing the digging/drilling.
This is great now maybe Obama can see how its done and fire a few bankers!
Methane explodes easy if the mine is venting methane then a shutdown until they can vent the gas if they can vent the gas is needed.
Never mind a full inspection and shutdown to fix every safety problem there is no way this mine will meet analyst estimates for coal production this year.
This WallStreet Journal story is a puff piece an Amateur Hour Puff Piece.
Yeager was also the first to break the sound barrier in the Bell X-1. Blankenship ain’t got those kind of nads.
and here they are:
Board of Directors
Don L. Blankenship
Chairman, Chief Executive Officer and President
James B. Crawford
Director
Robert H. Foglesong
Director
Richard M. Gabrys
Director
Bobby R. Inman
Director
Lady Judge
Director
Dan R. Moore
Director
Baxter F. Phillips Jr.
Director
Stanley C. Suboleski
Director
Some of these folks are fairly famous:
Lady Judge is the Chairman of the UK Atomic Energy Authority http://www.law.nyu.edu/alumni/almo/pastalmos/2009-10ALMOs/ladybarbarathomasjudge/index.htm
Stanley Suboleski has been revolving through Massey by way of being a commissioner for the Federal Mine Safety and Health Review Commission. http://people.forbes.com/profile/stanley-c-suboleski/51499
Not exactly what you’d call an independent board.
Standard and Poor’s stock rating on the mine’s debt is bogus its intended to provide the mine cheaper credit when they need it because of the disaster. Lets see S&P defend this turkey at year’s end.
And the Dow closed above 11,000! I’ll be thinking of all of this wonderful news while I’m living under a bridge somewhere.
Bloody Blankenship should be doing hard time in a federal prison for violating the civil rights [I do believe life is a civil right, right Catholic Bishops? Rightwing screeders? Stupak?] of these mine workers.
Or strip off his flag shirt and send him nekkid into his own mine. Bare-handed.
Sorry, no. Birth voids the warrantee.
Perhaps if Hilda Solis would call for more than a moment of silence (a moment of accountability, anyone?) the mine disaster outrage could be properly addressed.
May I be the first to suggest that the next shareholder meeting for Massey Energy be held at the bottom of the same West Virginia mine shaft where all of the miners have perished. We’ll see how seriously those previously “nonsensical” safety concerns by mine inspectors get taken then.
And no mention of Bobby Inman? Former Dep Director of CIA, Director of NSA, chairman of Dallas Federal Reserve Bank from 1987 to 1990.
On this I agree. It would also help if her boss made more meaningful remarks about responsibility and accountability.
After that Utah mine disaster I thought these company’s executive offices ought to be located in the mines. You’d see these guys suddenly exceeding all safety standards.
Let’s not go crazy… Yeager is the the best pilot ever, true. But he didn’t go Nazi Hunting Inglorious Basterds style. He did use his Macgyver-like skills to make bombs for the Marquis until they could smuggle him out of Occupied France, but he didn’t “elect to stay” and he laid low for the most part until he could get back to his squadron (it being an axiom of physics that the highest and best use of Chuck Yeager is strapped into a cockpit).
If anyone here any interest at all in aviation or history and hasn’t read The Right Stuff (and seen the movie), you’re cheating yourself as surely as Chuck Yeager cheated death on many many occasions.
http://www.youtube.com/watch?v=U8xA9xEdNvg
Or sell it to the local gas company.
I’d like to see them take the fines out of Blankenship’s personal accounts, since he’s the one making the decisions that lead to people dying in his mines.
Why is Bobby Inman on the Massey board?
I know that defense contractors like to have retired generals and admirals on the board, and that makes some commercial sense. But why would a coal company want Inman? What does he have to offer to Massey?
Like the Julia Robert movie when she offers “drink the (contaminated)water”
to the defense attorneys. Yep
I had a couple of relatives that flew with him at Muroc and Edwards. Didn’t intend to imply that he was involved in direct armed combat while with the Maquis, only that he assisted in blowing up Nazis.
And I couldn’t agree more with you. “The Right Stuff” is an incredible book.
Can you imagine NASA (or their predecessor) passing on him for the Astronaut program because he didn’t have a college degree? Talk about being ate up with the dumb shit. Hell, he was practically flying into space at the time with a hybrid jet/rocket modified fighter.
SouthernDragon mentioned the size of his cahoonas. OofDah
again, I apologize for being O.T.
Connections to the MIC and other agencies maybe
Former chair of Dallas Fed — He must know something about finance, in additon to all the spookery.
Let’s be perfectly honest. Most Americans could care less. They may shake their heads in regret but other than that it will be business as usual in a matter of days. Until there is a movement to challenge the status quo of a corrupt system nothing changes. Blogs are not a movement, merely a source of information.
The upgrade is because Massey’s stock price has taken quite a hit since the explosion at UBB. It has only to do with the stock’s valuation. Massey Energy (MEE) has been one of the year’s best performing stocks, but I wouldn’t touch it. I wouldn’t be able to live with myself owning a piece of that company.
Bit late to the party here, but I think #12 is only true if you’re talking about the molecular radiative power of methane. At this point, it’s concentrations and emissions are much lower than those of CO2, making it a secondary climate forcing:
http://cdiac.ornl.gov/pns/current_ghg.html
It would take a large out-gassing that overwhelms the methane cycle for it to exceed the importance of CO2 accumulation. Whether that could happen this century, perhaps from feedbacks (like the thawing of oceanic and permafrost methane deposits) looks uncertain, but some of the newer discoveries aren’t reassuring.
Late in the day to reply, but I’ve been saying similar for days. The rightwing media did it’s “job” by saying: ah, I haz a sadz for the miners; now all you good citizens spend 10 seconds having a sadz, too. There: done!
Most citizens are likely completely unaware that this mine isn’t unionized and/or could care less that it’s not. They simply don’t see it as “their” problem and have no concept of how complicit their gov’t is in all of this.
Blogging about it gets out some of my frustrations, but I fully realize that it does nothing to resolve the overriding issues. Sadly, most citizens could give a crap, frankly, just as they’ve been carefully taught to feel. Works like a charm for Blankenshit, don’t it?