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Credit Suisse says this year's coal market is shaping up a lot like 2012 - "not a good thing" -...

Credit Suisse says this year's coal market is shaping up a lot like 2012 - "not a good thing" - foreshadowing gloomy 2013 outlooks and further production cuts as a theme through earnings season. Peabody (BTU), which already provided lower guidance, remains its top pick in coal, but it's cautious on Alpha Natural (ANR), citing risks of additional thermal coal production cuts and lower realized met coal prices.
Comments (10)
  • mmritas
    , contributor
    Comments (23) | Send Message
     
    I know. Natural gas curse
    22 Jan 2013, 07:32 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    In short, Credit Suisse is short and going underwater. How this year is different:

     

    1)NG price rose nearly 100%
    2)Colder winter
    3)Iron ore price rose 80%
    4)EIA said coal generated electricity will rise 10% from coal this year.
    5)China recovered significantly after 8 quarters of downturn.
    6)Coal to gasoline plants going live

     

    I guess CS analysts do not much of research except for receiving fat paychecks.

     

    I can go on.
    22 Jan 2013, 07:38 PM Reply Like
  • Whitehawk
    , contributor
    Comments (3129) | Send Message
     
    True enough, and there was a bust in coal with a follow-on recovery, but will there be a boom from here?
    22 Jan 2013, 07:55 PM Reply Like
  • wigit5
    , contributor
    Comments (3981) | Send Message
     
    I wouldn't expect a boom but a slow steady recovery we won't see a boom cycle until the world gets back on track and we deal with the real problems of today... kicking the can down the road (in the US) and watching the EU nearly collapse to name a few
    22 Jan 2013, 07:57 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    If you read the article on Barrons, it was like some palmists aka hand readers telling you about your future. No wonder financial industry crashed big time.
    22 Jan 2013, 07:58 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    SA is late too. This article was published early morning.
    22 Jan 2013, 08:06 PM Reply Like
  • yliu54
    , contributor
    Comments (170) | Send Message
     
    Can the coal market be even worse? if it won' plunge again, then i will play.
    22 Jan 2013, 11:48 PM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    RIO just announced that it is closing 2 of its largest thermal coal mines. They shut down ports today due to storm. Same in indonesia, largest thermal exporter.
    22 Jan 2013, 11:52 PM Reply Like
  • strougo
    , contributor
    Comments (93) | Send Message
     
    Obama hates coal. EPA hates coal But utilities must use or spend billions on new plants and India and china burn burn burn coal.
    23 Jan 2013, 12:10 AM Reply Like
  • HoldAndBuyInvestor
    , contributor
    Comments (146) | Send Message
     
    Sadly thats the only option. Lot of coal to gasoline plants going live this year. ANR to contribute 15MT of coal to it.
    23 Jan 2013, 12:39 AM Reply Like
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