Thermal coal starting a recovery- Lowest inventory in 8 yrs
Arch just wrote down assets- All in all I think they
do well in the thermal market next year.
I wouldn't sell either ANR or ACI.
Listen to conference call..
These extremely low inventory levels will send prices up.
Whats amazing is the US used more thermal coal in 2013 than 2012.
When both companies were wildly profitable what was the difference 5% use in coal in the U.S.? Wasn't it dropped from 41% to 36% demand for awhile? I am trying to wrap my finger around what it takes to get profitable again like the early 2000's to mid 2000's? If any of you pro's know what it takes approximately to become profitable again please explain. I realize I am asking yahoo posters this, but sometimes there are some intelligent individuals on here who bring up good points.
If they have not been profitable for virtually a decade, why was ANR trading at 65 in Jan of 20011? This stock is trading well below the march 2009 lows and is priced at less than 8 cents on the dollar from where it was in Jan of 2011. Think of that for a moment. JCP is trading at about the same price because there is fear that it will go to zero. This ANR has had a much more violent pull back than JCP but it's still trading as if it's going to zero. The chart is useless but I just think it's oversold and see little downside from here. Perhaps we drop below 5 and margin calls drive it even lower but to me this would be an opportunity to buy more.