Peabody Energy (BTU -1.7%) sinks to its lowest price in four years as Stifel Nicolaus cuts its...

Peabody Energy (BTU -1.7%) sinks to its lowest price in four years as Stifel Nicolaus cuts its earnings estimates, citing lower coal prices and higher than expected costs. With 40% of planned 2014 production yet to be priced, BTU likely would benefit if a utility stockpile decline brings a recovery in thermal coal prices, the firm says, but Australia is a drag on results given continued slow demand for coal exports there.

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Comments (5)
  • Stone Fox Capital
    , contributor
    Comments (9928) | Send Message
    Just amazed that BTU hit lows yet analysts found the Q1 report as net negative. It suggested a far more bullish scenario for coal than what the market expects.
    22 Apr 2013, 04:02 PM Reply Like
  • chuck lewis
    , contributor
    Comments (436) | Send Message
    Well spoken. The "Street" has very little respect for the current BTU management as the stock action confirms. Maybe when they go to Gillette for the annual meeting they won't come back and a Wilbur Ross type will occupy the executive suite. Canaries will sing again.
    23 Apr 2013, 10:57 AM Reply Like
  • NoLookingBehind
    , contributor
    Comments (7) | Send Message
    The BTU lows and the transcending future in coal in 2013 from 2012. Outlook is improved compared to the previous year. Timeline is closer to the end of the tunnel. BTU will be profitable this year. Hey its equities and logic is out the window.
    22 Apr 2013, 05:01 PM Reply Like
  • nvanderelst
    , contributor
    Comments (3) | Send Message
    All so familiar. When gold tumbled to $250/oz and oil to $7/BBL, it was all doom and gloom, those commodities were never to recover. Investors who did their homework and bought at those levels are very happy today.
    I summise we are in a similar situation with coal. The world cannot function without coal. The more negative points analysts make, the better. Building positions in BTU now will be well rewarded in due course, I am certain of that. Analysts will rate the stock a strong buy when it has doubled in price, this is how it invariably works.


    Disclaimer: NJM Capital does not presently own BTU.
    23 Apr 2013, 05:35 AM Reply Like
  • Brian Gilmartin, CFA
    , contributor
    Comments (2246) | Send Message
    Agree, NVander. Thank you.
    31 May 2014, 10:21 AM Reply Like
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