Unlike Cloud Peak Energy (NYSE:CLD) and Peabody Energy (NYSE:BTU), I'm not certain that Alpha Natural Resources (NYSE:ANR)
will have the staying power to exploit a recovery in the high-quality
coal that it mines in Appalachia. As is the case with commodity stocks,
there is a return/quality trade-off here that may seem counterintuitive -
Alpha Natural doesn't appear to have staying power at today's coal
prices, but a solid recovery in prices would have a much more profound
impact on the stock price than for Cloud Peak or Peabody (and likely Arch Coal (NYSE:ACI) as well).
Read more here:
Cost Reductions Alone Can't Save Alpha Natural Resources
No comments:
Post a Comment