Goldman cautious on coal


"We still see 15-20 MM MT oversupply and believe wider supply reductions/ rationalizations will be needed as demand growth for met coal slows," Goldman's Brian Singer says, explaining his view that "the path to a recovery in metallurgical coal prices is likely to be slow."

As for thermal coal, Singer says that while recovering natural gas prices will serve to buoy thermal, "demand in the US [will be] challenged long-term by coal plant retirements."

Some of Goldman's Buy-rated coal stocks: SunCoke Energy (SXC), Cloud Peak Energy (CLD).

Coal ETF: KOL

From other sites
Comments (5)
  • chuck lewis
    , contributor
    Comments (436) | Send Message
     
    Editor The Lewis Letter
    Goldman analyst should read last week's Barron's two full page positive article on Peabody Energy. Opposite to what he writes, the demand from the Far East for steel making is huge. Location of Australia mines makes it an easy "delivery". BTU is in my model portfolio and since Barron's predicts a double, is there to stay.
    31 Aug 2013, 05:16 PM Reply Like
  • nemonemo
    , contributor
    Comments (337) | Send Message
     
    SeekingFraud forgot to put up the positive outlook note from Fitch released Friday afternoon. They said coal has bottomed.
    31 Aug 2013, 05:41 PM Reply Like
  • dctodd27
    , contributor
    Comments (119) | Send Message
     
    Goldman = Opposite Day. This means they are buying.
    31 Aug 2013, 09:42 PM Reply Like
  • nemonemo
    , contributor
    Comments (337) | Send Message
     
    ANR was conviction buy of Goldman at $45. Lol
    31 Aug 2013, 10:45 PM Reply Like
  • vireoman
    , contributor
    Comments (1211) | Send Message
     
    I own shares of CLD, and if it falls far enough I'll buy more. It's possible one can make money on coal, and it is possible one can lose money on coal. My hunch is that there are easier ways to make money than dabbling in this commodity. I suspect Warren B (not Beatty) has managed to make his billions without ever buying any shares of a coal company.
    31 Aug 2013, 10:08 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs