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Arch, BTU or ANR do not individually or even collectively have market power to force a supply balance.Almost 70% of coal is mined by small companies with low overhead. They control the supply and will keep mining.Coal it is everywhere. Even under your own backyard.NG is also now everywhere and a lot easier to extract than coal.Coal caused climate change.Now climate change will kill coal.
NO coal in my backyard. Miami
The only way this stock goes up, is if someone is stupid enough to make a bid for the company.
I don't agree with the strategy, but this:http://www.eia.gov/coal/annual/pdf/table10.pdfshows that the top 10 producers mined almost 70% of the coal. The 26 major producers produced 85.8% of the coal.Have things changed so much in a year?
Or you take out the top two and it is approaching 70% for the remainder.Too many players. Are the barriers to entry that low?How about transportation?Rails are eating any profits that coal may have had.$10 to coal miner for Powder River Basin coal.$15 to railroad to transport the coal.Railway robbery.Not much competing capacity on many routes. Any price increase will be swallowed by rails. Coal will get only enough to buy tires, pay employees and keep digging.