Piggybank

Analysts Come to Coal's Defense Following Yesterday's Sell-off

I don't think so. That coal would do well under rising energy prices was logical. That the coal price would jump up that much, up to 150$, was less logical.

At the current price coal it is actually getting that high that, should coal go even much higher, coal would loose a lot of it's appeal. if coal will go much higher in price then it will also get more expensive for electricity generation than for ex. uranium, natural gas and windmills, and later even solar. If coal rises even more demand should start to decrease. Thats just my oppinion though.

But i don't mind. I mainly invest in alternative energy, wich is not doing so well as coal atm, however alternative energy always had it's cost as disadvantage, it was further from grid parity than other resources, but if traditional energy resources rise a lot then rather than alternative energy moving to grid parity, grid parity will move towards alternative energy.

Either however coal production can be seriously ramped up, and then the price of coal could drop, or it can't. In either case well get a lot more pollution if more coal is going to be used, and that is a positive for clean alternative energy as well.

But anyway, coal probably can't keep going up like oil does, because coal is far easier to replace with something else for electricity generation. Coal always had it's main advantage of being cheap, with quite a few disadvantage's ofset by that cheap price.

The coal mining stocks do trade at hefty PE's. It's quite a thing to consider. I'm not going to speculate here where coal stocks will move in the short term, but i thought that the rise of coal prices was unsustainable above a certain level, and wanted to express that.
In any case, you sure would need balls of steel to step into this sector and these stocks at this moment. there is quite some space for these stocks to potentialy retrace.