As I work my way through the coal companies that interest me, Peabody Energy (NYSE:BTU) is in a tricky spot. Relative to Alpha Natural Resources (NYSE:ANR) and Arch Coal (NYSE:ACI),
I don't think there's really a long-term liquidity problem here, but
then the company also needs to see a real recovery in metallurgical coal
and I'm not sold on the company's position here.
Peabody's share
price still seems to include a quality premium and I don't have a
problem with that. The balance sheet isn't pristine, and the company
slashed the dividend to preserve liquidity, but the company's
well-placed in the U.S. Powder River Basin (or PRB) market and leveraged
to growing coal imports in China and India.
Follow this link for the full article:
Peabody Energy Not In Serious Danger, But Still Needs Higher Prices
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