svosavvy

Coal Stocks: The Real Economic Indicator

Thank you for the article. I like that you brought out the world index chart, I think we get a little insular here in the US. Also, I wanted to put in my 2 cents about speculative capital volatility. From what I understand I tend to agree with the writer and disagree with an above commenter. The writer was comparing to oil, which is traded in a highly liquid exchange backed up by a storage point of delivery and is easily delivered. All these things make it easily tradeable. Coal is big and heavy. True, companies buy the stuff and have tons of it sitting around for their own use. If you trade the stuff you would have to take delivery of the stuff then move it again to your end buyer. In the case of PRB the actual destination delivery cost may cost more than the short ton you are buying. The big trading moves in coal go something like: I am a big company that needs a lot of coal and I happen to have some room right next to my boiler, I feel that coal is cheap so I am going to stock up, or I feel the stuff is overpriced and I have enough to get by for now so I'll pass. It's not like the power company A says I am going to buy a bunch now while it's cheap to sell to power company B when the spot price goes up. A ton of coal and a ton of oil weigh the same, but, cost very different. It would be hard to eke out a middle man spread on the coal.

Time to Buy and Hold for Reflation: Four Promising Sectors

I would only add a couple things. China seems quite interested in prb (powder river basin) coal, as they are bleeding indonesia dry of quality coal. A relatively major component of coal pricing is destination cost. Canadian pacific appears to have bought the rails to get it out, let's see if they can move it to vancouver port cheap. We are in a legendary credit crisis and nothing is moving right now, if you have a little foresight hopefully you would realize that it won't be like this forever. The shovels are being idled because no one is making steel and electricity usage is falling like a stone, there are less big hungry industrial machines running right now. Long ACI Big Thunder, I want to be long CP when the price comes in some more, if it levels off I may sell some CP puts. Long high taxes on coal, they make a nice fundraiser for the gov't, this of course will get passed on to the consumer through higher prices but what the heck electricity is cheap anyway. As long as china the customer is paying duty at the border too.

Renewable Energy Reality: We're Dependent on Coal

I understood your idea from first noted in this thread. So do a fair few companies using solar reflection to make steam. In a nearly closed system you could generate plenty of heat with solar thermal. Heck you could run a solar panel and heat your ultra efficient house with a light bulb if you wanted. However, that isn't in the cards for most homeowners right now, so in the meantime coal is our friendly smelly crutch to get us to those high flying days. Heck you could spread tin foil over the polar icecaps reflect those rads and cure global warming. Now thats an idea you could get a company together get an underwriter and have an ipo sell some shares at a ridiculous valuation take everyones money and leave them with nothing. There's a good reason why people hate alt enegy because it's still poorly run and overvalued. But we're getting there and until we're there bring on the coal, because... it's .. cold ... outside...

Renewable Energy Reality: We're Dependent on Coal

First off, sounds like you have an obnoxious neighbor for that I'm sorry. Second, what is your alternative? Tin foil. I live in the northern zone, on thursday it is supposed to be -12F I'm sorry I have a VERY tight house, but, I don't think tin foil is going to do it. What is you alternative, we are still waiting for your good idea. I have a useful idea to sequester some CO2 and water vapor, you could try holding your breath. I still haven't heard how you are carbon negative, your tin foil will probably be mined from a bauxite mine in australia or africa or jamaica. Then smelted in a pot halfway across the world then transported via ingot to another factory to be rolled then packaged to be distributed to a supply warehouse somewhere else only to be shipped to a store where you can drive there to buy it then use it and then pay someone to haul it away so it can oxidize and revert to the mean in a landfill and we can start over again. I'm sorry, but, i'm long wood that I cut off my property within walking distance of my stove.

Renewable Energy Reality: We're Dependent on Coal

what do you heat with?

Renewable Energy Reality: We're Dependent on Coal

Gumby-Firewood is carbon neutral, I know you have probably driven by some guys house that has stinking smoke spewing from the chimney, but, where is the carbon derived from? Unless he is burning virgin growth (which I highly doubt) that carbon has been derived from a playing field that is most likely <100 years old. In other words he is withdrawing from a bank account that has been scrubbing the atmosphere and is now making a withdrawal. Coal is expending the carbon of a different time in our planets history. Think of it like this if a single person has a glass of water and drinks it, if he peed the same volume back into the glass that would be firewood. If he refilled the glass from a pitcher like coal he has to find somewhere to pee. Carbon sequestration is very important. Coal is a necessary evil, it is giving me the electricity to write this response. I like the author's article except for the prospecting part, we already know where the coal is we just need to get it transported in an economically viable way. Look at canadian pacific rails moving on the dm&e, they will have a big customer (china) if they can get prbc to vancouver port cheap. If the rails can get prbc to the east coast cheaper it will really give appalachian coal a run for its money. Long aci and long firewood.

The Real Rationale Behind Current Supply and Demand for Oil and Other Commodities

Good input about global warming. Seems to be becoming the new religion. The only problem about being a follower of any religion is that as a generality we only follow the parts we like, visa vis driving your car to the global warming rally listening to folksy rants on your i-stuff made of petrochemicals. I always give more weight to those who are seeking the answers instead of preaching the answers.

Don't Ignore Coal at Current Lows

to mark anthony yes I agree short term bearish on coal, but, that indicates buying time to me as is the point of this exercise buy low etc. Seems drys would be a bear too until things pickup. I bet after 1Q09 things will look a lot different from the international viewpoint. Indonesia seems the only real competitor for the grade of coal the us produces. Weaker diluted dollar will get us commodities moving again.

Don't Ignore Coal at Current Lows

good observation dee, they are probably headed to the powder river basin (prb) in wyoming. There is international interest in the prb which is the saudi arabia of coal. PRB spot prices are cheaper than appalachia and everyone is looking for cheaper ways to transport it out to the west and east coasts. The big problem with the prb is it probably costs more to haul a ton than to buy a ton of coal. Canada pacific's buying interest in the DM&E RR would give them a main line from prb to vancouver to ship to china. ACI owns black thunder the highest yielding mine in the best stake in the world. Long aci, buy it now while it's cheap and the morons that say obama will shut down coal will have to get used to living in the dark.

Cramer's Mad Money - Steel Reels, Coal Stinks (10/27/08)

altria isn't dependant on exports? He just got done talking about how much europe smokes. What about emerging markets for pepsi? Trying to get the developing world to drink soda?

No Buy Recommendations - Cramer's Lightning Round (10/1/08)

Get out your bear meat slicer, lol. If obama wins the presidency, we will still need electricity, long aci especially at these give away prices, bought some more today.