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Wow ... The confessions of a stock trader. The analysts on BARCHART have it as a buy. I noticed other coal companies are up ..is something da matter w'th BTU.
I guess we both think it might go up some day. Did you notice GLOG OR OILT
It Pays a dividend and it has shot up before but has something changed? There's
a restructuring or bankruptcy? I thought it was the largest coal company? Any boudy bullish on this stock?
Quote:
Originally Posted by emcee squared
I know I bought BTU at the high end and at the low end. I have about broken even now.
Environmental regulations making coal more expensive (including most recent set of EPA guidelines that will be litigated for an eternity).
Fracking (and the gas glut) causing power companies to switch to gas-fired plants
China (and their people) realizing that holy crap, our land, water and air are REALLY REALLY dirty, and maybe they should find an alternative source. That and their economy is slowing.
Pros:
Japan, Europe are interested in alternatives (Japanese nukes down after Fukashima, solar&wind subsidies too darn expensive for the Euros, and they need alternatives to Russia)
Emerging economies continuing to expand
Can't go much lower, can it? One of the lowest costs/ton in the industry.
I work in resources, while domestic demand for coal is down due the dirt cheap natural gas, coal isn't going away, yet. I would estimate that in the next few years, emerging markets who are still consuming greater quantities of coal will increase demand.
Another issue is the over supply. When I was first hired as a geologic consultant (2011) all I did was work in coal. Junior coal mining operations sprung up everywhere because of high coal prices while majors (like Peabody) expanded their operations and bought out lots of these juniors. Then over the next couple years it was like "Okay, now... we have all this proven coal reserves... and... uh... well... I guess we really didn't need this much coal production." So coal was being overproduced and the price plummeted. Lots of these juniors went under and large companies suffered losses. I now hardly ever work on coal projects unless it's to verify a resource of a junior company for the bankruptcy courts. Give it a few more years - these things go in cycles and Peabody will go back up.
As an aside, BTU stands for British Thermal Units and is a measurement in which we define the quality of the fuel in coal.
I work in resources, while domestic demand for coal is down due the dirt cheap natural gas, coal isn't going away, yet. I would estimate that in the next few years, emerging markets who are still consuming greater quantities of coal will increase demand.
Another issue is the over supply. When I was first hired as a geologic consultant (2011) all I did was work in coal. Junior coal mining operations sprung up everywhere because of high coal prices while majors (like Peabody) expanded their operations and bought out lots of these juniors. Then over the next couple years it was like "Okay, now... we have all this proven coal reserves... and... uh... well... I guess we really didn't need this much coal production." So coal was being overproduced and the price plummeted. Lots of these juniors went under and large companies suffered losses. I now hardly ever work on coal projects unless it's to verify a resource of a junior company for the bankruptcy courts. Give it a few more years - these things go in cycles and Peabody will go back up.
As an aside, BTU stands for British Thermal Units and is a measurement in which we define the quality of the fuel in coal.
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Why did you buy BTU?
