Seeking Alpha

Coal miners Alpha Natural Resources (ANR) and Peabody Energy (BTU) are -2.3% and -1.4% premarket...

Coal miners Alpha Natural Resources (ANR) and Peabody Energy (BTU) are -2.3% and -1.4% premarket after they're nailed by downgrades at Nomura. ANR is cut to Neutral from Buy as the firm sees more significant earnings and free cash flow risks than expected, while BTU is cut to Reduce to reflect more conservative forward multiples given elevated earnings risk and weaker growth rates.
Comments (12)
  • I thought Nomura has downgraded coal a dozen times in the past 6 months. Didn't know they had more bullets with the name "fade into our short cover".
    12 Oct 2012, 08:49 AM Reply Like
  • Lol. They always seem to have more bullets when it appears convenient to fade (or pump).
    12 Oct 2012, 11:08 AM Reply Like
  • If nat gas goes to $5 (as suggested yesterday), will coal stocks like BTU stay low...despite downgrades? Might be a good time to buy some coal.
    12 Oct 2012, 08:56 AM Reply Like
  • Just like, as in the great Adam Sandler movie, "You Can Dooooo It"! Great time to go Coal long 12-18 month long. Probably can take some profit along the way because it is coming!
    18 Oct 2012, 01:38 AM Reply Like
  • Personally I dont give a whoop whoop what Nomura thinks or any investment firm thinks for that matter. What a bunch of ivy league putzs.
    12 Oct 2012, 09:03 AM Reply Like
  • I would be selling naked puts on ANR
    12 Oct 2012, 09:24 AM Reply Like
  • As soon as I saw "BTU downgraded" I knew it had to be Nomura...even though I couldn't believe there were actually any coal stocks they didn't have a sell rating on. Sure enough the biggest enemy (friend for those looking to add?) of coal bulls is at it again.
    12 Oct 2012, 09:25 AM Reply Like
  • Downgrading a stock the day after a big % move reeks of STOCK PRICE MANIPULATION.
    12 Oct 2012, 09:27 AM Reply Like
  • Remember that these analysts are trying to make money too, and they'll say anything to better their position.

     

    If he's cutting his "rating" there is a good chance we could see a general trend upward going forward the next 12-16 months.
    12 Oct 2012, 09:55 AM Reply Like
  • Forgot to mention; Higher stake in Coal ETF (KOL) and smaller on ANR due to fundamentals and my own personal comfort zone. Either way, Go Coal!
    18 Oct 2012, 01:38 AM Reply Like
  • Agree 100%
    18 Oct 2012, 01:38 AM Reply Like
  • These analysts are in need of a Check Up from the Neck Up! Obviously some price manipulation going on here! Look the demand for coal, now more than ever, is going to grow enormously over the next 12-18 months. The number 1most important natural element needed to fuel global energy AND has anyone heard lately what is to be expected with future energy prices??? Hmmm; Do the math and its a simple move if you get in long. I'm long on coal ETF's and equally on ANR! Stick that in your ANALYSTS ***! Ops, can i say that? Oh well! Trade well.
    18 Oct 2012, 01:38 AM Reply Like
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