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)
Perhaps, But the saudi's have a monopoly on low cost oil and like all monopolies you first drive all your competitors out of business than you raise the prices to as high as you possible can, i.e. standard oil and j.d. rockefeller.. BTW the U.S. shale producers will eventually lose anyway by going in and out of production because they don't have the staying power opec does. the U.S. can't enforce its anti trust laws against the saudi's. the u.s. is powerless against this low cost oil.
first increasing production and than drastically reducing production to drive up oil to $200. we will see $200 plus thermal when nat gas hits $15 in about 2 years.
well i'm puzzled because the oil patch and iron ore producer clf are taking write downs on there asets (i know how its spelled, yahoo is scrambling this word, talk about over reach) which directly effects there book value. do you know why btu isn't writing down theres?
the irs calls the book value fair market value. how else can they, state and local governments #$%$ property taxes. like your home the btu tax #$%$sment fluctuates on market value. cfo's must make these periodic corrections (up or down) to be up to date and btu's cfo has been doing this.
P.S. If i may add, you'll hear people say that since oil isn't burned to produce electricity OPEC has no effect on coal. Its correct that oil isn't burned for electricity but what those same people won't tell you is that almost 100% of the natural gas burned for electricity comes from oil wells as a by product. Thats why so much NG is flamed off because there's no way to transport it.
You have to believe shale will exhaust itself in 3-5 years. which is a pretty good bet from the due diligence i've been doing. Than with OPEC back in control slashing production & raising oil prices, ng will follow and coal as well. I'm puzzled when people hate OPEC so much when there doing exactly what we would do in there position. Besides from the coal industry prospective OPEC is a God send and may end up saving coals life and the longs holding coal stocks. GL.
s&p research says that of all stock dividends that were cut and or eliminated 80% of those stocks had dropped in price significantly up to 12 months before the cut. dividend cuts or elimination are usually no surprise.
yeah pretty much agree but every time i try to pull the trigger here it drops another 5%. now i'm thinking a good entry is $6.62 or 50% of bv for a generous margin of safety for us value investors. you really have to believe that electricity consuming customers won't stand for replacing 40% coal generation with very high priced renewable alternatives no matter how green. GL
just an observation
target price 6 mos $10. the 4th qtr will be an out and out disaster, HEY, THATS WHY JEFFERIES TOOK OFF!
Yesterday was short covering.
Shares of Peabody Energy (BTU) touched a one-year low of $82.01 but rose 4.25% to $8.59 in late morning trading Tuesday as oil prices recovered slightly after sinking to a new five-year low. From Yahoo headlines. Cramer will do and say anything for his hedge friend buddies short and put positions on BTU.
$150b in projects in jeopardy of being closed down - cnbc nbr