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Coal is now cost competitive with natural gas for power generation, and the industry has seen...

Coal is now cost competitive with natural gas for power generation, and the industry has seen utilities switching back to coal, which Global Hunter says points to a sooner than expected recovery in fundamentals. JRCC +9.8%, ACI +7.1%, WLT +5.9%, CNX +5.3%, ANR +5.2%, BTU +4.3%.
Comments (9)
  • By recovery in fundamentals he means the free-fall in prices has stopped.
    4 Oct 2012, 12:30 PM Reply Like
  • Well, one could quote SA on that:

     

    Some Signs Of Improvement For Coal
    http://seekingalpha.co...

     

    Why Natural Gas Pricing Matters For Coal Right Now
    http://seekingalpha.co...
    4 Oct 2012, 12:32 PM Reply Like
  • Romney 2012. coal 2013.
    4 Oct 2012, 01:13 PM Reply Like
  • Paulo is there a coal etf and would it be a good risk reward investment?
    4 Oct 2012, 01:13 PM Reply Like
  • There's KOL. I usually like playing the stocks directly, though.
    4 Oct 2012, 01:36 PM Reply Like
  • Paulo: Which stocks do you see prefer? What is your opinion on WLB?
    4 Oct 2012, 05:08 PM Reply Like
  • I'm long ACI and ANR, this is more about thermal coal so preference should be given to those having a higher weight on thermal coal (here a problem might be that those also selling met coal could have taken more punishment, such as ANR).

     

    I don't follow WLB, though.
    4 Oct 2012, 05:12 PM Reply Like
  • I've been wondering about WLB. I don't claim to be real familiar with them but they went the bankruptcy route in the late 1990s and in certain respects were similar to Patriot Coal. Large unsustainable legacy costs which interestingly they did not shed in bankruptcy. During the bankruptcy, the union tied them up in litigation and in the meantime the coal markets improved enough that they were able to emerge with common shareholders actually not getting wiped out.

     

    Anyway, their history as well as their current operations are interesting. They are nothing like any other publicly traded coal company.
    4 Oct 2012, 05:39 PM Reply Like
  • All energy sources going higher priced with rising demand. Government polcies that affect prices such as coal are unknownables and best handled by diversification among energy sources.
    4 Oct 2012, 06:20 PM Reply Like
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