Although 2011 was not an especially strong year for any industrial commodity, it was a pretty lousy year for coal. Export volume stayed pretty high, but momentum was sapped by weakness in met coal and a general cooling-off of what was probably far too much investor enthusiasm to start with. As is almost always the case, it wasn't different this time.
That being said, investors may yet want to bone up on Cloud Peak Energy (NYSE:CLD). As a pure play on the closest thing to clean coal, Cloud Peak could see stronger demand in both domestic and export markets, as well perhaps as interest from larger buyers. (For more, see Earning Forecasts: A Primer.)
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2 comments:
I have some CLD. It hasn't done much since the RIO spinoff, maybe at least in part because of this administration's opposition to coal. Having only 10 yrs reserves left may put a crimp in its attractiveness to a larger buyer, I would think.
Depends on the buyer. For a company like BTU or ACI it wouldn't be much of a problem, as those reserves would be just part of a much larger whole.
Will definitely impact the premium they get, though.
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