Arch Coal, Inc.
In his bestselling book "Fooling Some of the People All of the Time: A Long Short Story," David Einhorn discusses making gobs of money shorting stocks of troubled companies. While I'm no David Einhorn, I think the canary in the coal mine at Arch Coal (NYSE: ACI) needs to be monitored, closely.
Headquartered in St. Louis, Missouri, Arch Coal is a global leader in coal production and distribution. The more »
Coal companies are facing challenges from all sides. Higher operating costs are eating away at margins, natural gas production is becoming easier with new shale technology, and environmental regulators are stomping out damaging production practices and use.
Not all companies are doomed, however, as coal exports are still promising. Let's take a look at which firms are in trouble, and which could be profitable for the next several years more »
The United States holds the largest coal reserves in the world. Generating electricity using coal, while environmentally destructive, is economically more viable than most other methods of power production. The electricity that coal makes possible is incredibly important for America. Given that over 90% of the coal our country consumes comes from domestic sources, investors ought to give some consideration to buying an American coal company.
Peabody Energy more »
Arch Coal’s (NYSE: ACI) stock price has appreciated more than 12% over the past month, but some investors will strongly argue that this is nothing more than a dead cat bounce. With no international improvements in thermal coal markets in the second quarter, and all coal exports expected to be lower in 2013 than 2012, finding reasons to be bullish on Arch Coal can be challenging. However, challenging situations more »
Aside from solar, no industry in the market has been more beaten down over the last few years than coal. With that said, solar stocks saw a rebound earlier this year, and now with decent data and shifting outlooks, many believe it is now time to buy coal stocks – but is it?
Since January 2011, coal stocks have been the worst performers in the stock market. Take a more »
China’s PMI slightly expanded in July to 50.3 compared to a 50.1 reading in June. As a result, industrial metals’ prices jumped. If readings continue to improve in the following months, it may be a good idea for you to gain exposure to the basic materials sector.
The steel sector was sent to the ground
Steel is one of the most widely used metals due to its more »
At a time when the whole coal industry faces severe headwinds, Peabody Energy (NYSE: BTU) surprised analysts by reporting a profit instead of a loss. The company’s second-quarter earnings topped analysts’ estimates by $0.38. Does this mean that Peabody Energy and the coal industry are back on track? Let's find out.
In the second quarter, Peabody earned net income of $90.3 million, or $0 more »
In previous eras, coal dominated the energy consumption market, being both abundant and cheap. However. over the past few years, the popularity of coal has plummeted because of a hostile political environment, the low price of natural gas, and a worldwide economic slowdown. But contrary to popular sentiment, global demand for coal is expected to increase. To paraphrase Mark Twain, the death of coal as an energy source has been more »
Companies like Arch Coal (NYSE: ACI) had touted metallurgical coal as their darling savior, but the industry must face a deceptive truth: increased steel demand won’t equal increased met coal prices. That spells big trouble for the met coal market, and American producers in particular.
Coal miners are some of the most beaten down stocks this year. And one of the most unfortunate companies among coal miners is Walter Energy (NYSE: WLT). The stock is down 71% already. Investors hoped that the second quarter earnings report would show some improvements. This was not the case.
No positive changes so far
Walter Energy has beaten earnings estimates, losing $34.5 million, or $0.55 per share more »
Although coal use increased in the first quarter at utilities, coal sales fell because energy companies dipped into their stockpiles to meet their fuel needs. Stockpiles are now below their five year average, according to the U.S. Energy Information Administration (EIA). Although 2013 is a transition year, this dynamic should set up rising demand for companies like Peabody Energy (NYSE: BTU), Arch Coal (NYSE: ACI), and Alliance Resource Partners more »
Usually, one wouldn't want to tread into the territory of Russian stocks. The precise reason being stocks based in Russia tend to be volatile because of governmental interference, political situations and influential people like (who else?) Vladimir Putin. On the upside, certain Russian stocks provide an opportunity for discerning investors to purchase under-priced stocks if they are willing to take risks.
One company that particularly interests me is Mechel more »
Coal companies are still recovering from write downs, but slowly, the industry is coming back. Now, there are a number of companies trading at or below book value. Simply buying up the entire industry is not a good idea, but there are some miners that are trading at very attractive valuations.
Thank the momentum effect
In the world of finance, there is a more »
Coal stocks have been one of the worst performers this year. The sector was pressured by low coal prices and massive debt levels of the companies. The first significant coal stock to report this season was Peabody Energy (NYSE: BTU). The company has beaten analysts’ estimates, reporting a profit instead of the expected loss. Is this the start of the revival?
Key takeaways from the report
The company has continued more »
If there’s a better value in a less well-liked industry I haven’t found it yet. I’ve written multiple times in the past about Alliance Resource Partners (NASDAQ: ARLP), and I’m back again to pound the table for this amazing company in an industry that seemingly no one wants to invest in.
When it comes right down to it, simple economic factors drive the prices more »
In case you haven't been paying attention, the U.S is undergoing a major energy revolution. Since 2003, investors and institutions have invested in drilling on an unprecedented scale. As a result of this massive capital investment, the U.S. produced the most natural gas in history. The previous peak was in 1971. Over the past four years, gas production is up 20%. With all the new supply coming more »
Coal as an energy source is likely to stay in the long term to preserve a diversified energy portfolio. However, in the last couple of years, the coal industry has been under pressure due to economic crises in most parts of the world and lower natural gas prices.
The coal industry is likely to recover from ongoing crises as economic activity improves and natural gas prices rise enough to make more »
With the abundant supply and cheaply priced natural gas in the U.S, the clean fuel has successfully replaced coal in many industries. While coal prices have declined by nearly 25% over the last year, the rising domestic gas demand and increasing liquefied natural gas (LNG) exports have pushed up gas prices by nearly 30%. As a result, electric utilities now prefer coal over natural gas due to its low more »
Even if CONSOL Energy (NYSE: CNX) has not been hit quite as hard as some of its peers by the weakened demand for coal, the business has still been struggling recently. In the first quarter of 2013, total revenue decreased 10% versus a year earlier and the company actually recorded a small pre-tax loss compared to pretax income of about $120 million in the prior year period.
The thermal coal more »
Low coal prices have been the major culprit behind a waning coal industry. Peabody Energy (NYSE: BTU), the world’s largest private coal company, has been no exception to the declining coal sector. On July 3, 2013, Peabody’s shares closed at a mere $14.65, showing a 43% fall on a year-over-year basis.
With Peabody’s share price plummeting, two key questions come into mind: Has Peabody Energy bottomed more »
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