u0022Obama stakes final 2 years on climate controlu0022. Obama has drawn the line in the sand. He will destroy coal companies Time for Greg Boyce and other coal company CEOs to get tough. Close ALL of the mines for a few weeks. Let a few people get cold. Should not reopen until coal can be shipped at a profit. OBAMA WILL CLOSE EVERY COAL MINE IN THE US. OBAMA, HOWEVER. CANNOT FORCE COAL COMPANIES TO SHIP COAL BELOW THE COST OF PRODUCING IT. Time for the coal company CEOs to take action.
NRP to pay the regular distribution (35 cents). Means that shareholders will get a 4.25% return on the year even if NRP kills the distribution the rest of the year. Will buy a few more shares tomorrow if I can buy below $8.25.
ACI down 12% today. ANR down 9%. Will again see record lows until coal fundamentals improve. Big drop today for natural gas also. Seems to move with the latest weather report. Bad news for thermal coal prices.
If you heard Obama's speech yesterday, you know that killing coal is at the top of his agenda for his last two years in office Question now is, will the consumer pay the big increase in utility rates to achieve Obama's goal??? I think so. Coal stocks are going much lower!!
Next shoe to drop will be Obama's State of The Union address next Tuesday. He will continue to destroy the coal industry.
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.
1. NRP Corporate Officers have bought large numbers of shares over the past few days (Corbin Robertson111 50,000). Would think that they are confident that 4th qtr numbers (rev., inc., cash flo etc) look okay and that at least the February distribution is safe..
2. Wonder who is trading the abnormally high number of shares (3X average daily volume).
A. Short interest slightly above 1%
B. No significant options transactions
3. Recent acquisition effective mid quarter. Will not hurt entire 4thqtr results.
NRP has moved lower than I thought for 2014. As I have said before, NRP shares will trade between $5 an $10 in 2015. Will trade back to $10 before ex (31 trading days).
Oil and natural gas down 5%. NRP down almost 6%. Goldman Sachs say that crude goes to $40. Only $6 to from here and will probably see that this week. The Street says that crude is going lower. Natural gas headed to $2.50 even with cold weather around the country. And NRP is 77 cents above a record low. Should note that WLL was down almost 13% today. They run the Bakken operation that we just acquired.
Much of CNBC's programming has been about energy since mid December. Most guest analysts put the bottom for crude about 6 months out. Almost total negativity at this time for crude, natural gas and coal.
Look what happened with the forecast of a few warm days! As I said, a warm winter will wipe out most coal companies. Most closed today within pennies of a record low.
Analyst on CNBC this morning can remember when oil companies paid customers to take n/g. Dennis Gartmen on CNBC's Fast Money sees a "2 handle" on n/g. We are going much lower!
Coal shares now tied to crude price. WTI crude has dropped in 50 days from $110 to $49. Many analyst now see crude in the $30s (ie Dennis Gartman). If coal fundamentals do not improve, ACI, ANR, WLT and CLF will bankrupt in 2015. BTU will survive but trade under $5 in much of 2015.
Natural gas has dropped more than 30% over the past few weeks. T. Boone Pickens was interviewed on CNBC this morning. He said that ng out of the Bakkens is already trading below $2. Looks for improvement in 12 to 18 months In the meantime, many coal companies will bankrupt. BTU will trade around $5.