Peabody Energy Corp
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 »
Those who think that energy demand can do nothing but rise should take heed to the quarterly report of Duke Energy (NYSE: DUK).
The North Carolina-based electric utility missed street estimates badly. But it's the reason for the miss that should give investors across the sector pause.
Rhino Resource Partners (NYSE: RNO) stands out from the coal pack because of its around 14% yield. That's a level at which most investors should assume that a big dividend cut is being priced in. However, Rhino is actually less levered than most of its competitors, giving it an edge in an industry with high fixed costs.
Owning and operating coal mines requires a lot of up front capital 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 »
The owners of aging nuclear power plants have been opting to close them instead of paying for updates to keep them going. With new environmental laws regarding power plant emissions at least five years away, more nuclear plant closures could be on the way. That should help coal maintain or even grow its share of the electric generation market.
Cheap natural gas prices led electric utilities to cut back on 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 »
Japan is known as the land of the rising sun, and for good reason. The country has some of the best renewable energy feed-in tariffs in the world. Beyond wind and solar, the country is changing other industries. Recently, imports of crude oil and heavy fuel oil have seen a strong boost. Beyond buying the Nikkei, there are many ways for energy investors to invest in Japan.
The Oil Story 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 »
The demand for coal in the US has been suppressed over the past few years due to the slow economic activity and the low natural gas prices. However, as the natural gas price increased and the economy started to recover, the demand for coal was seen to rise again in the latter part of 2012. From amongst the US-based coal mining companies, three companies have some of the largest reserves 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 »
Walter Energy (NYSE:WLT) has fallen 75% year to date. Should investors buy now or wait until the smoke clears?
China, which accounted for 45% of the world's steel demand in 2012, is slowing. According to Caterpillar, demand for construction equipment in China has halved. Because of the headwinds, the benchmark coking coal price has subsequently fallen quarter over quarter from $172 to $145 and most metallurgical more »
Is the coal industry slowly making a comeback? Several coal companies such as Peabody Energy (NYSE: BTU) and CONSOL Energy (NYSE: CNX) have rallied in recent weeks: Shares of Peabody increased by 10% during the past month; CONSOL’s stock rose by 16.8%. Despite this recent rise in the stock market, these companies are still down for the year. Will these companies continue to heat up?
Will revenue rise more »
The U.S. Energy Information Administration projects that energy use will grow “56% between 2010 and 2040,” largely because of emerging markets. It also expects coal demand to flatten, but not until the end of its projection period. In other words, for another twenty or thirty years, coal's growth looks just as solid as any other fuel source.
That outlook doesn't square well with coal's image today more »
A few days ago, Fool analyst Michael Olson added CSX (NYSE: CSX), a freight railroad company that dominates the east coast, to his real-money portfolio. Of course, that recommendation hinges in large part on the continued success of coal, which currently accounts for approximately 40% of U.S. energy. Despite a near-consensus bear attitude toward coal, reasons for optimism remains.
Coal prices might go up—but not too much
As more »
It’s no secret that the coal industry in the United States is under fire. A multitude of industry headwinds, including depressed natural gas prices and ongoing regulatory threats, have brought the entire sector to its knees.
In looking across the S&P 500, I found a number of top stocks that are trading at steep discounts to their 52-week high and their respective industries. The reason I decided to go "dumpster diving" in the S&P 500 is an intriguing insight provided by Nate Tobik over at Oddball Stocks. He notes that the market generally prices large stocks correctly and believes that to...
...outwit the market 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 »
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 »
- Page 1 of 10