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Peabody Energy (BTU +0.3%) expects its Q1 2013 results to come in weaker than originally...

Peabody Energy (BTU +0.3%) expects its Q1 2013 results to come in weaker than originally thought, but sees increased U.S. gas-to-coal switching, and thinks global seaborne coal markets show signs of improving next year. The optimistic take overlooks high inventories, weak export demand and rising regulation; most coal shares are higher: ANR +3.2%, WLT +2.5%, ACI +1.3%.
Comments (2)
  • U.S. gas to coal switching will accelerate faster than most expect as political knowledge of, and opposition to, fracking, accelerates, - e.g., Matt Damon's new movie focused around fracking, "Promised Land", is scheduled to debut in 2013. A bit longer term, fracked gas fields are running out faster than expected - experts give this industry 8 to 15 years - once this is realized, long before 8 years, expect the cost of gas to increase, and accordingly, that of coal.
    16 Dec 2012, 07:44 AM Reply Like
  • Best play in coal could be Fuel Tech:

     

    http://seekingalpha.co...
    17 Dec 2012, 11:26 AM Reply Like
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