Caused primarily by America: how
- American burning of fossil fuels
- Chinese burning of fossil fuels using American dollars generated from shipping American industry to China
Warm Balmy winters in North America - (Elec. demand down)
Moderate Summers in North America - (Elec. demand down)
Brutal summers and drought in Africa. Who cares - they have no dollars to pay for anything. ACI only accepts dollars.
Coal demand to continue collapsing.
ACI must immediately cut the dividend to 1c / share to conserve cash. Or face bankruptcy.
paperinfire, what company are you CFO of? The shoe shine booth at the casino. If Arch needs to cut the dividend they will. If they don't cut the dividend their in reasonably good financial shape. The shelf registration is not necessarily a negative. Additional financing for reserves is not unusual when a President helped cut domestic demand.
ACI has projected 2012 sales and most of the projected production is sold at profitable prices....
Coal rebounding in 2012 will make the current PPS look very attractive, when ACI is profitable last few quarters and in next 3-4 quarters...
I believe, it is affected by the sector.
Switched from ANR to here because ANR has much better P/B where as in this price environment ACI is comparatively safer from P/E perspective.....
Spot price Powder River Basin: low sulfur coal
ACI biggest volume seller
down 20% (as of Fri 2/2/2012 afternoon)
A dividend cut will delay a bankruptcy but will it prevent it ?
If / When all US focussed coal companies file for bankruptcy protection due to excess production then
- blame Obama - BWAHHHHH
- Obama cut production - BWAHHHH
- too little coal in the market due to Obama - BWAHHH
5 year chart ACI vs BTU
Underperformed by 1500% - that is 15x.
Amazing. Same industry.
If ACI will not cut the dividend it must be sold.