New highs today for dow and S&P.. ALL coal stocks down and have lost most of last week's big gains (NRP too).
Today's coal headlines:
1. "Arch Coal Stock falls today as thermal coal prices decline". - from "The Street".
2. "Natural gas boom is drowning out coal industries battle cry" - Forbes
3. "Don't buy CLF" - Jim Cramer (CLF leases met mines from NRP).
NRP is going much lower. ALL COAL STOCKS ARE GOING MUCH LOWER.
Dow up 6. Dow and S&P continue to make record highs. All coal stocks trading down. NRP opened up but now in the red and at the low of the day. GOING LOWER! Natural gas trading down.
Obama destroyed the conservatives (I am one) with his executive order re immigration. Republicans should have done something ages ago. Next executive order - carbon tax. Coal stocks are dead money (and worse).
Certainly nothing new in the WSJ article. Short interest in these stocks has been above 50% for months. If there is no improvement in coal fundamentals (thermal and met) these coal companies and others will bankrupt. ALL APPALACHIAN COAL IS BEING SHIPPED BELOW COST TODAY. More importantly to NRP holders, NRP will cut or eliminate distributions w/o improvement in fundamentals in the coal business.
Just noticed that Rivestone Holdings.LLC now owns 3,752,202 shares of NRP. Believe it makes them the largest owner of NRP shares other than insiders. Anyone know anything about Riverstone??
My reasoning is not so complex, jrad.. Those who bough the new shares (8.5 million) at $12 have collected a distribution payment and are up more than a dollar. Good profit for a short term investment. Also, as I have pointed out, NRP shares have had a significant drop every quarter even when the distribution was higher and thought to be secure and when the company was showing record revenue and income. Believe the share price is going much lower before year end.
Big move up today for every coal stock in the universe EXCEPT NRP!!! The reason, NRP just went ex and share price has had very big drops after every ex date for at least the past 16 quarters. (usually around 20%).. One of the biggest volume days since NRP went public. NRP shares are going much lower.
Met coal news gets worse each day. The big problem is oversupply.
ACI was also up 10%. ANR up more than 7% but "The Street" reiterated a "sell for ANR.
NRP is now above the 50 day moving average ($12.90). Next stop could be the 200 day moving average which is $15.03. Keep your fingers crossed. Today's move was the biggest percentage up move in the four years that I have followed NRP. Don't know why. ALL of the coal news continues to be bad. Could be the cold weather that is pushing ng up.
RECORD HIGH DAY FOR THE DOW AND FOR THE S&P.
Thank you jran. Do believe that NRP could hedge natural gas holdings at this time. Analyst that I follow think that we are near the top for ng and that it could trade below $2 over the next few months.
Believe that Whiting Petroleum is operating the oil and gas businesses in the Williston Basin business bought by NRP. Is it possible that Whiting Petroleum has crude oil and natural gas contracts fixed for a few months out(or years) ??
Big down day for most coal stocks (CLK dropped 20%). Most are headed for record lows. "the Street" reported that Australian miners cut the price of thermal coal today. COAL NEWS GETS WORSE EVERY DAY
Most headed for new record lows.. Need a few more days just like today to wake up the coal company CEOs. "The Street" reports today that Australian miners cut the price of thermal coal again today. If we can't get a big increase in US thermal coal prices with current weather conditions, it's time to throw in the towel.
Dow down 41. All coal company shares down. CLF might close Canadian iron ore mine (iron ore has dropped from $160 to $70 per ton). Bad news for met coal also. Natural gas trading up.
Good discussion on this board re NRP's recent acquisition. If crude oil price continues to drop and if met coal price does not improve, NRP will cut or eliminate the next distribution.
The greenies on CNBC this morning are blaming global warming for the snow storms and low temperatures.
Temperatures in North Carolina last night were the lowest ever recorded. November to date has the tenth lowest average temperatures on record. OBAMA AND THE GREENIES WILL WIPE OUT THE COAL INDUSTRY IN THE US FOR NO GOOD REASON I THINK.
WTI crude has dropped almost 20% since NRP announced this deal (from $93 to $75). No matter what the break even happens to be, this will be a serious drop in income for NRP. I am disappointed that NRP did not hedge when they announced the deal.