"Biggest worry is the direction that Chinese Metallurgical coal demand will take over the next few years". That is the coal issue!!! That is the reason that coal company shares have been killed recently.
China is just getting started compare to USA which had 50 years of expansion. China is in its 10th year of expansion for 1B+ population...I am sure they will need lot of supply for long time or there will be war...IMO.. Analyst are bunch of average human trying make living. Like me and you they are correct for 50% of time...IMO
Fair point. However, the Morningstar article is actually favorable to BTU. Direct quote: "We are also fairly bullish on another PRB miner, Peabody Energy. Although we believe it destroyed several billion dollars of shareholder value when it acquired Macarthur Coal for $5 billion, the company still has a world-class asset portfolio with a favorable cost profile..."
Could be wrong, but present price looks pretty compelling.