in potential costs. One less roadblock to overcome in BTU's revival and return to the 70's price level.
wisconsin utilities have imposed a "base load" charge raising electricity rates 60% in some cases because of people installing solar panels for there sunshine needs. wait till the feds outlaw coal completely. than what?
cramer's a mouthpiece for the hedge and pe funds. he's a good contrarian indicator i.e. do the opposite. the fast money crew is another joke out to rape the retail investor like cramer. cnbc will do whatever it takes to protect the east coast money mongers including the money center banks. make up your own mind if you watch or listen to cnbc/bloomberg/fox biz do it by disbelieving most of what you see and hear. CERTAINLY don't act on it.
i wouldn't hold btu short coming into the next quarter. unlimited risk when the stock moves up for the shorts and there's not much left in the short trade here to the downside $1 or $2 max. only a fool would hold btu short here.
shorts have likely stop shorting here because the upside risk out weighs the downside by a large margin and this stock will not go to zero from here so shorting you may only get $1 or $2 per share. not worth the risk. so holding long is the play here.
look up graham, buy and hold
even with $55 oil and off 4% today
should start seeing some nice returns 2nd q 2015 sooner if the saudi's cave to opec members desperate for cash i.e. iran, venz, libya etc. and start cutting production before next meet in june 15
no sellers left either short ( who would take the huge risks for the little gains at $7 - an idiot short is who) or longs going bearish. looks like tax loss selling is also done. I'M CALLING A BTU BOTTOM HERE !
p.s. shorts time to cover.
what we may start seeing soon are funds and others selling overbought stocks with big gains, or some of those gains, to buy the cheap and getting cheaper commodity issues including coal. we will continue seeing tax loss selling up to Weds Dec 31st 2.5 weeks away.
First Call on the Vanguard site shows BTU analysts with 3 buys 4 holds and only 1 sell.
i've seen many times in the past these stocks where there is no one left to short or sell there shares and btu is as close to to this point as i've ever seen. it will either go sideways for months or the value buyers will step in and start the climb back up be it very slow but positive. new hands are about to takeover.
that's how it works on wall street. cramer and cnbc are long time mouthpieces for the hedge and pe funds that buy the advertising and invests there new york money. all to loss of the little guys who cramer brainwashes with his ever changing touts and hisses. next year the funds will be telling everyone how they made 100% on the coal stocks after they pump and sell. today they talk the coals down to wrestle the shares away from the gutless weak hands.
actually your on to something. $6.62 is 50% of the published btu book value or when serious value investors start investing with a generous margin of safety (see graham)