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
wait for a generous margin of safety that starts around 50% of BV or $6.62 or lower before committing there funds.
i thought we hit bottom the other day when oil went down a $1 and btu went up $.20 with the market. It should have gone done $.50. Today we're back on track with wti down $1.5 to $2 and btu should be at $1.00 down by close. Ahhh all's right with the world, btu only goes down never up. i feel much better.
until a margin of safety is reached - generally around 50% of BV or $10 or less. imho of course.
in the EPA redo of carbon emissions. Like radio active hazardous waste, coal ash hazardous waste would cost coal burning electric utilities 10's of billions of dollars to transport and dispose of. This was part of a 60 Minutes report on Duke Energies 100 million tons of coal ash in 14 coal waste ponds polluting drinking water, river and streams in N. Carolina. This will most definitely speed up the conversion of coal to gas in electric utilities. Another nail in coals coffin.
btu is an anti-shareholder company with very little inside ownership. mgt is just collecting there salary and *uc the future, what little there is of it.
the Norwegian Analyst uncovering this SDRL project has a $7 price target on SDRL
agree i'm taking this btu #$%$ to my grave and than i'm going to leave it in my will and put in a condition they can't sell it until it hits $500 a share and if it doesn't they have to pass it on to there kids etc etc. let them deal with it. don't get mad and give up get even and than some. if it goes bk tough #$%$.
this company gave up on valuing its shareholders a long time ago. when btu goes under the mgt here has set aside enough cash for themselves to survive. they've done this by continuing to mouth trite #$%$ to keep those owning its shares involved with this LOSER !
i'll justify the purchases by convincing myself they can use them for school.