yes likely, but there won't be any shares until they go public again which means if your a fund and need to own coal btu will be the one of the largest and strongest balance sheet thats public
they still need to wrestle the weak handed retail trade out of their shares. thats how this games played.
the mm's are eager to buy through all the retail trades that put a stop in at 11.88 support and the mm's are looking to establish a new bottom of support for volumn and repeat the process. mm's target is $10 before the bulls return
its a race to the bottom with aci in the lead and btu a distant fourth. perhaps btu will be the only one left to sell to whats left of the coal burners
they'll be dumping whatever was accumulated. old longs are mostly gone by now so no waiting for those blip ups and than down on sharp sell offs on break even. question is: where are the blip ups?
#$%$ it its over
Wells Fargo is quite negative, despite the favorable sustainability report, and took its valuation range down to $4 to $7 from its prior range of $7 to $10 range. In fact, it is more of a downside in the opinion of analyst, Sam Dubinsky. The opinion is marred by iron ore prices being in free fall and the company’s high-cost structure. Dubinsky also sees downside below its target as part of its Underperform rating. Another issue is that asset sales are key, yet they will not be easy:
"We value shares at $4-$7. The low end is based on an EV/EBITDA multiple of 7.5X theoretical earnings post restructuring; the high end is based on a P/E multiple of 10X. We are using benchmark iron ore ~$80/MT in our model. " Dubinsky
no, btu will be the only man standing since among aci as bk candidates are anr and wlt which will also go out of business or drastically reduce production down before btu does.
trust me on this its playing out to the downside
it appears the supercycle downturn will take out clf as its next victim.
yeah aci and wlt look worse and worse each day for cash flow to maintain there debt covenants. btu is no hero but it just may end being a winner by default.
agree. i've lost plenty of money adding to 2nd and 3rd place losers. than i found out the pe and hedge guys add to drawdowns all the time because they find that longtime established firms that are number 1 in size and share in there industry tend to out survive there competitors. sometimes even prosper after the bad times.
6 repubs need to be elected over Dems to regain the Senate and 6 of those Senate seats are in coal producing states.why i'm optimistic.
its easy. the market will continue to believe coal is dead until after the fact of the election. most people do not believe the GOP will regain the senate. until that happens coal won't budge.
agree. Boyce is the biggest wet #$%$ cat in the biz. he hasn't even reduced headcount yet. forced reduction through chap 7 will be the only savior for coal. btu may be a survivor.