Mon, Aug. 31, 11:36 AM
- Coal companies (NYSEARCA:KOL) continue their apparent short-covering rally, even as J.P. Morgan cuts its coal price forecasts, expecting excess production capacity built in recent years to keep downward pressure on prices in a mirror image of the late 2000s when capacity shortages drove prices higher.
- Even where capacity is forced to pause, much of it could be brought back quickly, which is acting as an overhang, the firm says.
- Arch Coal (ACI +19%) leads the gainers after extending its debt exchange through Sept. 23; the swaps originally had been scheduled to expire on Aug. 14 and then were extended through last Aug. 28.
- Also: BTU +8.8%, CLD +6.4%, WLB +3.1%.
Fri, Aug. 28, 9:17 AM
Thu, Aug. 27, 12:47 PM
Thu, Aug. 27, 9:14 AM
Wed, Aug. 26, 2:09 PM
- Peabody Energy (BTU -7.2%) has hired Lazard to advise the company how to restructure its $6.3B of debt, Bloomberg reports.
- BTU, which is suffering from a collapse in demand for coal, is said to be talking to creditors about ways to cut its debt load, including swapping obligations for new shares or convertible notes.
- Several coal miners have filed for bankruptcy this year including Alpha Natural Resources, Walter Energy and Patriot Coal, as the price of coal used in steelmaking has dropped 72% since April 2011.
Wed, Aug. 26, 9:14 AM
Tue, Aug. 25, 9:19 AM| Tue, Aug. 25, 9:19 AM | 7 Comments
Mon, Aug. 24, 9:19 AM
- Gainers: GAS +29%.
- Losers: VTL -79%. ACI -31%. BZUN -25%. WBAI -23%. JMEI -20%. BTU -17%. MDR -17%. CSIQ -17%. VIPS -16%. FIT -16%. SFUN -15%. LC -15%. PLUG -15%. EXXI -15%. QIHU -14%. MACK -14%. ACHN -14%. KNDI -13%. CYBR -13%. OHGI -13%. Z -13%. TCK -13%. JKS -13%. AVEO -12%. OAS -12%. WLL -12%. MCUR -12%.
Fri, Aug. 21, 9:15 AM
Thu, Aug. 20, 2:54 PM
- Soros Fund Management disclosed minuscule (for Soros) stakes in Peabody Energy (BTU +24.6%) and Arch Coal (ACI +42.1%) at the end of last week. Combined, the Peabody holding of 1.03M shares and Arch holding of 533K shares amounted to less than $2.5M versus AUM north of $20B.
- The tiny stakes in the two near-bankrupt coal producers could be thought of as a lottery ticket, or maybe it's just The Palindrome - well known for railing against coal as it pertains to climate change - tweaking his political enemies.
- The stocks of both companies didn't do a whole lot for two sessions after the disclosure, but soared yesterday as Arch Coal was reported on working out a debt swap compromise with its creditors.
- News China could be producing a whole lot less in the way of carbon emissions than previously thought could be sending the two flying higher again today.
- CLD +3.9%, WLB +1.4%, RNO -2.15%, CNX -0.8%, KOL flat
Thu, Aug. 20, 12:45 PM
Thu, Aug. 20, 9:14 AM
Wed, Aug. 19, 12:45 PM
Wed, Aug. 19, 9:14 AM
Thu, Jul. 30, 12:48 PM
- Cloud Peak Energy (CLD -3.7%) is not immune to challenging market conditions, even if it is in better position than its coal mining peers, Cowen analysts say as they cut CLD's price target in half to $5.
- After examining CLD's Q2 loss, the firm says CLD can expect flat 2016 results if market pressure persists, but the company still remains the preferred play for Powder River Basin recovery exposure, given its lower relative risk profile.
- Other coal names are mixed: Arch Coal (ACI +13.9%), which missed Q2 earnings expectations, is higher, while Peabody Energy (BTU -0.4%) is slightly lower.
Tue, Jul. 28, 8:33 AM
- Peabody Energy (NYSE:BTU) says it is suspending its quarterly dividend and will evaluate whether to reinstate the dividend in the future as circumstances warrant.
- BTU's board also authorizes a reverse split of common stock; if shareholders approve the reverse split, the company would choose among five alternative ratios between 1-for-8 and 1-for-20 as approved by shareholders.
- BTU -3.7% premarket after reporting its Q2 net loss widened to $1.04B, or $3.84/share, from $73M, or $0.27/share, a year earlier; excluding items, the loss was $0.65, in-line with expectations.
- During Q2, the company priced 14M tons of PRB coal for delivery in 2016, and now has 89M tons of PRB priced at $14.23 next year.
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