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After forcing concessions from SandRidge, Chesapeake and Hess, activists may feel emboldened to...

After forcing concessions from SandRidge, Chesapeake and Hess, activists may feel emboldened to target more laggards that have missed the uptick in energy stocks, Claudia Assis writes. Sluggish Apache (APA) has prompted concerns about its management and growth potential, Occidental (OXY) is under pressure to keep costs under control, and Peabody (BTU) shares have sunk ~19% YTD.
Comments (7)
  • Of course shareholders can "win" by forcing management to do the right thing or by management volunteering... Either way is fine with us.
    14 Mar 2013, 06:03 PM Reply Like
  • Editor, The Lewis Letter,
    I have written on these pages and in my Lewis Letter how complacent the Peabody management as far as stuckholders are concerned. BTU is the only (and largest) coal company that makes money, the rest are near bankruptcy. The stock's market cap is a petty cash $5 billion selling at a third of real asset value. My writings are sent directly to the company's Senior VP, Investor Relations without response. The only way to "move" management is to hang them by yhe heels down a mine shaft. They will not "volunteer" anything, nor can they be "forced" unless one has the tickets to throw them out. A vulture type pirate will shock the lamp lights out when it swoops in take BTU away, and the canaries will sing again.
    14 Mar 2013, 06:13 PM Reply Like
  • well chuck, what do you suggest peabody do? the market for coal sucks in terms of price and profitability. that they are profitable at least allows them to hang on for the next supercycle. i am long btu and expect the next few years will show me a great return.
    15 Mar 2013, 03:51 AM Reply Like
  • Peabody management speaks volumes of how great the Company is at analyst and investors meetings with little reaction. It is a credibility issue. Management can seek a white knight before an unfriendly activist gets "active". Dead money under present conditions. Market cap of $5B is peanuts and petty cash for a Wilbur Ross type vulture.
    Unless someone makes a move on BTU or the company sells itself your holdings have little hope to move upward. Dividend is punk.
    15 Mar 2013, 10:48 AM Reply Like
  • the "buyout" by an unfriendly activist is the only answer with present entrenched management collecting their pay and under managing a great asset. The proof is when a new management takes over the subject stock runs up. This group have no credibility in the financial community. Will seek a white knight when an a vulture lands in St. Louis. BTU is down almost 20% YTD, It did not split 2:1. It will be a teen ager sooner than later, selling under 20. A plus is: NG is rallying towards 4 which would help BTU.
    16 Mar 2013, 11:31 AM Reply Like
  • ok, so they don't move up. why can't a sell call and do quite well that way?


    and i don't see how changing management to have more "credibility" - which isn't a problem in the first place, imo. ... will do anything to help the weak pricing market. that they are profitable at a time like this only shows they have probably the best management of any coal company.


    who cares if they do make a buyout? the premium will make that a good thing.
    15 Mar 2013, 10:54 AM Reply Like
  • the rest of the sector is a bankruptcy ready to happen, managements that failed. These BTU guys care less for the stuckholders and the price of the stock, down 20% YTD proves it.
    17 Mar 2013, 12:46 PM Reply Like
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