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Peabody Energy (BTU) is a bargain but it's the right fit only for the most patient investors,...

Peabody Energy (BTU) is a bargain but it's the right fit only for the most patient investors, Chuck Jaffe writes. BTU's $5B takeover of Australia’s Macarthur Coal is a debt burden; a 109% debt-to-equity ratio is high even in an industry known for heavy debt loads. BTU also gets low marks for growth and momentum, due to macro forces totally beyond its control.
Comments (4)
  • maudie
    , contributor
    Comments (468) | Send Message
     
    "due to macro forces totally beyond its control"..Talking about Obama?
    9 Aug 2012, 06:36 PM Reply Like
  • J. Sheehan
    , contributor
    Comments (724) | Send Message
     
    Ha! Well, I must say that lately BTU has shown it's stability feathers. While ANR and ACI go off the walls, BTU's has been steady. It is currently my favorite right now, just because I got super lucky and picked up some Sept 21 calls for $.85 and they will reach $25 by expiration
    9 Aug 2012, 07:37 PM Reply Like
  • thefouras
    , contributor
    Comment (1) | Send Message
     
    "only for the most patient investors"...isn't that the definition of long-term investing?
    10 Aug 2012, 12:56 AM Reply Like
  • yblarrr
    , contributor
    Comments (830) | Send Message
     
    In this period of low rates,will there ever be another time to have
    lots of debt? Holding BTU mainly for its global positioning.
    10 Aug 2012, 07:31 AM Reply Like
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