Commodity HQ: A Deeper Look At Australia's Commodity Industry

One of the wealthiest countries in the world, and the richest in Asia in GDP per capita terms, Australia is an unusual mix of a modern market economy with a large commodities-driven export infrastructure. Despite the influx of wealth created by its natural resources, Australia has never been particularly successful in developing a large manufacturing base. What’s more, the country has run large and persistent current account deficits for over a half-century. Nevertheless, Australia has very significant and efficient mining and agricultural sectors, and ranks highly in the world in many categories.

To read more, please click the link:
http://commodityhq.com/2012/a-deeper-look-at-australias-commodity-industry/

Penn Virginia Still A Worthwhile Partner

Coal has been hot again lately. Prices have rebounded from last year, domestic utilities have worked down stockpiles and overseas demand continues to grow. As a result, coal companies all across the board are near their 52-week highs, including giants like Peabody Energy (NYSE:BTU) and Arch Coal (NYSE:ACI). For investors more inclined towards income-producing assets, however, there is still time to consider the merits of Penn Virginia Resource Partners (NYSE:PVR) - a high-quality company involved in both coal and natural gas. 

A Third Quarter Lacking A Bit of Energy
On first blush, Penn Virginia's third quarter results do not look like the sort that would get investors very excited. Distributable cash flow (a non-GAAP metric that gives a sense of the company's distribution-paying capability) was down 9% and adjusted net income was down about 13% from last year.


The coal business held up well enough - royalty revenue rose 17% on a 15% increase in royalties per ton, while production barely ticked higher. That, in turn, fueled 25% operating income growth.

To read the full piece, please click below:
http://stocks.investopedia.com/stock-analysis/2010/Penn-Virginia-Still-A-Worthwhile-Partner-PVR-PVG-BTU-ACI-ANR-ARLP-NRP1029.aspx

Peabody Looking To Stoke Up Profits

Oh what a fun earnings season we are having. One day you see positive news from transportation, the next day you see iffy news from a basic metals or materials company, and then the next day you see a bank report a shrinking loan book.

What, then, to make of the earnings of coal giant Peabody Energy (NYSE:BTU)? There is no question that Peabody had a solid quarter and management was relatively positive on near-term guidance. Moreover, near-term trends are looking good in the coal market. But does this mean the economy is getting better, or are their unique factors at work in the coal business?

For the full piece, please go to:
http://stocks.investopedia.com/stock-analysis/2010/Peabody-Looking-To-Stoke-Up-Profits-BTU-VALE-RTP-BHP-ANR0722.aspx

Green China

Whenever you read about environmental topics in China, the news is almost always bad. Whether it is problems with air quality in Beijing or water quality in the provinces, there is no shortage of bleak reports about the degradation of nature within China's borders. 

This may not be the full picture, though. True, China has a lot of polluting industries and generates a considerable amount of electricity from older coal-burning plants. The country also has the challenge of figuring out how to provide power, heat, and transportation to a huge population with increasing needs. But China also has considerable financial resources and a political structure that can more easily mandate and advance specific technologies.

With that in mind, it may not be too long before a green China is possible.


For the complete article, please go to: 
http://stocks.investopedia.com/stock-analysis/2010/Green-China-STP-YGE-JASO-GE-CCJ-BTU-ABB0610.aspx

Penn Virginia Turning Coal Into Cash

Penn Virginia has been one of my favorite companies for a while, and it's a company that I have written about a lot over the years. Oddly enough, I've never actually pulled the trigger and owned it in my own portfolio. Maybe soon, though...

Say you want to invest a portion of your portfolio in coal, America's dominant energy source for electricity, but you also want to get a hefty stream of income from that investment. Unfortunately for dividend-seeking investors, the leading names in the coal industry like Peabody Energy (NYSE:BTU), Arch Coal (NYSE:ACI) and  Massey Energy Co. (NYSE:MEE) do not pay especially large dividends. What do you do?  

Well, you could try to buy a share in a coal mine lease, but that is quite frankly not an option for most regular people. You could also pursue a covered call writing strategy, but that may be a bit too much work for some investors. Or, you could also just buy the shares of a royalty partnership like Penn Virginia Resources (NYSE:PVR). 

http://stocks.investopedia.com/stock-analysis/2010/Penn-Virginia-Turning-Coal-Into-Cash-PVR-BTU-ACI-MEE-RRC-EOG-ARLP-NRP0512.aspx  

The Peabody Story Is Elementary (BTU, ACI, CNX)

Once again I get to write about one of the better-run companies out there today...
Seems like every commodity is just collapsing into a puddle of goo, but that won't last forever.


http://community.investopedia.com/news/IA/2008/The-Peabody-Story-Is-Elementary-BTU-ACI-CNX1022.aspx