Dow up 82 and most coal stocks up fractionally NRP traded flat early on but now up a few pennies on low volume. If volume picks up share price will drop. Natural gas up slightly. Watch inventory numbers on CNBC at 10:30.
1. BTU currently trading at $17.21. Estimated 2014 profit 5 cents
2. ACI currently trading at $4.57 Estimated 2014 LOSS $1.43
3. ANR currently trading at $5.24. Estimated 2014 LOSS $2.10
4. OXF currently trading at $1.17 Estimated 2014 LOSS $1.50
5. JRCC currently trading at $ .74 Estimated 2014 LOSS $4.76
Question! What is your estimated share price for each of the above coal company shares??
As I said previously, natural gas is replacing coal in the US at twice the level that we thought a few months ago.
The US coal industry is going the way of the textile industry. Unlike the textile industry it isn't because of imports. IT IS BECAUSE OF INEPT COAL MANAGEMENT!.. IF BTU makes that nickel this year, where will the stock price be at year end. If you think that BTU will beat, what is your most optimistic profit and year end stock price target???
That's what Motley Fools Contributor James Catlin just said. Said that we are shifting to natural gas twice as fast as expected (through 2020) even though utility rates are going up. Says tha BTU will make 5 cents, ACI will lose $1.43 and ANR will lose $2.15. This after a pretty cold winter and big increase in natural gas price,
I see at least 4 coal companies in line for bankruptcy. BTU might live another year. Inept management (understatement).
Motley Fools contributor James Catlin just wrote column titled"Time For Coal to Retire" Said that the conversion from coal to natural gas is taking place twice as fast as expected through 2020. Notes as follows:
1. Utility rates will increase.
2. BTU will make 5 cents per share in 2014
3. ACI will lose $1.43 per share in 2014
3. ANR will lose $2.15 per share in 2014
ACI and ANR lease mines from NRP. The above comes when we have had a pretty cold winter and when natural gas prices have risen significantly. Cannot believe that mining CEOs are so inept. Shut the mines guys. In the few days that Obama is going to let you survive, make him pay. Do not ship another ton of coal at a loss. JCCC, ACI,, ANR, Wlt and CLF headed for bankruptcy. Believe ARLP will make it. They can afford to give away their coal.
Disappointing! NRP lost almost half of early gains. Going lower. The big shareholders have not finished selling. Note big sellers action to date: Morgan Stanley sold all shares, BB&T sold 84% of their shares, Bank America 77%, and Credit Suisse 48%
Absolutely correct! Question is, how long will it take? If the world price of coal doubled today it would still be the cheapest source of energy for 90% of the world's 7 billion population. Hard to understand why the coal company CEOs don't take advantage of that.. Many of the analysts that I read are looking as far out as 2017 for a coal recovery.
Market flying. S&P at another all time high. Dow up 193. Most coal stocks up. CLF selling off because of downgrade by Wachovia. CLF leases mines from NRP. Coal stocks still most hated on the planet. NRP trading up on light volume. Natural gas up a few pennies.
If you didn't catch him this morning, you should pull up his interview and comments about climate. Basically, he says that the climate hasn't changed over the past ten years. No hurricanes in 3 years, etc. Makes me feel much better about the coal business. Course we still have Al Gore to worry about. He invented the internet and predicted all the bad stuff about global warming.
Big move down for the dow. Most coal stocks down. NRP again held above $15 after trading within a penny of a multi year low. If NRP breaks below $14.80 there is no bottom in sight..Natural gas dropped again today. More cold weather in the forecast for awhile. Not helping coal stocks. Most are headed lower. Some will bankrupt.
Warren Buffet has been on CNBC all morning. Did not take a position on global warming. Did say that there has been no unusual weather patterns over the past five years. At that time insurance companies were allowed to raise rates significantly. Al Gore had convinced the population that the world was going to be destroyed by co2.. Buffet implied that his insurance businesses have done very well over the past five years. Joe Kernan said that there has not been a major hurricane to hit the States in 3 years.
Quoting guidance given 2/13.2013:
"The agreement also contains an earn-out provision, which would require NRP to pay Anadarko up to $50 million, on a net present value basis, over a three-year period if OCI Wyoming L.P. achieves specified revenue targets during that period". Don't know why all the commas but I have copied from a report title "National Resource Partners L.P. Reports 2012 results and issues 2013 guidance".
From the 10-K, looks like expected 2014 income is greater than 2013.
In a meeting with an analyst group last spring, Nick Carter did talk about the purchase and the possible $50 million input. Said that it would be a big plus for shareholders..