You know it is easy to be a Monday morning quarterback when you're not in the game. Met coal was going toward $400 a ton. Australia coal mines were going to be out of service for up to a year. The rail lines were washed out.
Now what happen in that time? The world went into a recession and steel making slowed down. GM had to be bailed out along with the banks. Of all the buys, ANR got the most coal for the bucks. They got 2.8 billion tons. WLT got around 200 million tons and ACI got 1.1 billion which 30 percent was Met coal. ANR got 1.5 billion tons of Met coal.
ANR is $3.89 billion in debt while ACI is $5.16 billion in debt with WLT $3.19 billion in debt.
Now I liked the coal assets both ACI and ANR got. The only problem I did not like is if ACI was going to buy ICG why did they buy their assets in two different buys? Before the big deal ACI bought a coal asset from ICG. As I have posted on this board before you want find it in history of ACI. You have to dig to find it.
Now ACI bought Otter creek reserves in hopes of a coal to fuel plant but it may have been a whitewash deal to make ACI look better than it was. This coal is not that good and it was bought real cheap.It is cheap because it is not like the other PRB coal it has. It has high sodium levels. That is 1.5 billion tons of coal reserves ACI has that are not as good as the other PRB coal it has.
Now this coal can`t be used in a boiler because the salt will eat up the boiler. It will have to be washed and treated to remove sodium and then it will have to be blended with other PRB coal. On top of that there has to be a railroad built which does not seem to be moving along because many people in the area don`t want tracks in this beautiful area.
Yes all coal companies paid a lot for their buys in 2011but in 2008 CLF made an offer to ANR for $128.12 a share when ANR only had 500 million tons. In 2008 TCK bought Fording coal for $14.1 billion and they have less Met coal than ANR has now.
And the management of ANR, and BTU, etc. etc........ coal companies across the board joined in the frenzy at the peak and made horrible decisions (unless you were the acquired company). Not a single one of the coal management or BOD's were paying attention to the fact that Obama was serious about going after and destroying the coal industry. Not one.
One key omission from the thesis is the unfolding catastrophe in the US shale industry. Sub $50 crude it's gonna get ugly quick once the hedged contracts run off...
Sounds like coal problem because of disruptive technological advancement from NG and Solar. This is the reason coal will be dead!!!!
coal is not dead just dead in the U.S. because liberals think if we don't burn it then the invisible curtain will protect us from the rest of the world. while other nations make things we buy with borrowed money from them.... GENIOUS
The thing that I was surprised to discover as I read these and other books was that disrupted companies were not blindsided. Disruptive technology doesn’t sneak up on anybody; it’s nearly always loudly heralded long before its victims fall prey to it.
Companies nearly always have plenty of time to properly address disruptive technology. So why do so many fail to do so?
Blockbuster. Nokia. Kodak. Most businesspeople know what they have in common. They are all companies whose footsteps you don’t want to follow.
They were all market leaders that fell prey to disruptive technology. How can your company avoid that fate? I’ve been exploring that question, having taken as my topic for a recent conference the historical lessons that can be learned by organizations that failed to respond appropriately to technology disruption of their core businesses. I read a great deal about disruptive technology and enterprises that have collapsed due to inappropriate response to it, and I also conducted some research of my own, asking several senior executives to list organizations that have been disrupted technologically and what they thought of those organizations’ responses.
My immersion in the topic awarded me with two insights. First, disruption is a wicked hot research topic. Second, there is a boatload of very powerful and affordably implementable prophylactic measures that enterprises can adopt to make sure that they do not become the next Blockbuster, Nokia or Kodak.
I’d like to mention some of the best titles on my disruption reading list, but first a word about the conference where I spoke, which was the Flight Training Industry and Design Conference, known as Migration. Most conferences are set up as celebrations of best practices. There’s value in that, but there’s even more value in organizing a cerebration of mistakes one does not want to make. Disruptive technologies can come for any of us. To be prepared, we need to do detailed management autopsies on organizations that have inappropriately responded to disruptive technology wielded by competitors.
He died fro cardiac arrest an hour later in the hospital, you fool.... let the media stir the race war, now lets burn down NY for the black killing two white cops in an ambush...freaking blacks are cowards.
THE STATE of TEXAS! They are going to flood with NG....
NG Lower and lower...
Solar lower and lower cost.
Batteries lower and lower cost.
Cow poop power....
More and more
Tick tick tick tick....Weeks away from a big new development....
It's a marathon, not a sprint.........
Apparently you haven't watched the one year chart.....
that is what my three cousins who are cops said they will do should they break any law! in which case they were all trash guilty of many crimes on record! I 'm not saying lots a cops ain't evil.. just saying do what you got to do when the time comes and you know your own deal. btw coal isn't going under but the politicians might play insider fraud trading if they are allowed,, which it looks so far to me!
Sentiment: Strong Buy
also the department of interior is part of the Obama resigm trying his best to do anything to coal before the new congress so why are coals up today.
i chased this so far down it doesn't make sense to sell now,, i remember what the insiders here did to me with siri at 5 and 7 cents.. Jim Cramer screwed so many for the insiders and himself,, SEC did absolutely nothing, siri shareholders were robbed at the bottom,, look where the INTRUSTED SEC ALLOWS THEM TO TRADE IT NOW!
you must be new to the board? Loser George, Marky mark 1950, and jimmyjohns show their ignorance several times a day on this board.