The decline in coal stocks deepened today as investors absorbed Pres. Obama's plan to limit...


The decline in coal stocks deepened today as investors absorbed Pres. Obama's plan to limit coal-fired plants, sending Peabody Energy (BTU) and Alpha Natural (ANR) to multi-year lows and Arch Coal (ACI) and Consol (CNX) to YTD lows. But Sterne Agee is skeptical of the plan's actual impact, noting political and legal hurdles could keep changes from taking effect soon and contending coal shares have overreacted to the news.

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Comments (7)
  • gsrTea
    , contributor
    Comments (34) | Send Message
     
    I agree everyone is over reacting, changes will most likely ease in, and carbon catching filters will be placed on plants and it will be business as usual, been buying anr on dips
    26 Jun 2013, 08:32 PM Reply Like
  • maudie
    , contributor
    Comments (477) | Send Message
     
    political and legal hurdles? EPA? Democrat senators from coal states? Surely you jest.
    26 Jun 2013, 08:59 PM Reply Like
  • jbirdsall
    , contributor
    Comments (6) | Send Message
     
    I don't mind starting to accumlate a long position here, but it could be months and months before we see a big move in ANR or the other coal stocks given current fundamentals. I like ANR at 4.90 or so, but most likely willl sell 3 puts and 7 calls as I think we see a sideways trade through the summer months.
    26 Jun 2013, 09:01 PM Reply Like
  • mbeauclair
    , contributor
    Comments (5) | Send Message
     
    agree
    26 Jun 2013, 09:01 PM Reply Like
  • Zeus2012
    , contributor
    Comments (713) | Send Message
     
    Obama's plan is basically DOA - he can't even get some members of his own party to support it.

     

    Having said that, the problem with thermal coal is natural gas. Until we see widespread of LNG export, thermal coal price will remain depressed.

     

    On the met coal side, don't see how demand will improve until China economy picks up.

     

    Thus, people should be more worry about the supply / demand issues than whatever the President is laying out to sooth the left flank of his party.
    26 Jun 2013, 09:09 PM Reply Like
  • sethmcs
    , contributor
    Comments (3514) | Send Message
     
    Isn't there some chemical that could absorb CO2. The emissions just need to be cut not eliminated. Why is this so hard? Remember the flue gas is very hot which should make the chemical reactions easy. Another thought is coke ovens which have been around for over a hundred years captured the impurities and made useful products out of them.
    27 Jun 2013, 12:42 AM Reply Like
  • totalincome46
    , contributor
    Comments (144) | Send Message
     
    There are a number of technologies available, including coal gasification, that reduce CO2 emissions. However, many are not yet cost-effective. In my opinion, a time will come when coal for thermal use, or even for conversion to gas, liquids or synthetic fuels, will become attractive. And fortunately, our country has huge reserves.
    27 Jun 2013, 08:50 AM Reply Like
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