Coal stocks Articles

BP Energy Report: U.S. Production On The Rise, Global Demand Slows

June 13, 2013 / Daniela Pylypczak

While the global economic slowdown has impacted nearly every corner of the investable universe, one commodity group that has been hit particularly hard has been energy. Oil, gas, coal, and even nuclear power have all fallen victim to sluggish economic growth and dwindling global demand. And in its annual energy report, BP takes a closer look at how exactly the global recession has impacted the sup...Read More

The Uncertain Future For Coal

June 4, 2013 / Jared Cummans

It used to be that coal dominated energy consumption around the world, as this fossil fuel was both abundant and relatively cheap to use. But as big oil stepped in, the past few decades have seen dependence on coal cool off. In more recent years, coal has taken an even bigger hit as developed countries have attacked the fuel source for its negative environmental impact. As fracking continues to pi...Read More

Commodity Growth: All Eyes On China

March 18, 2013 / Jared Cummans

As markets continue to roar forward, many investors have turned their gaze toward the commodity world, wondering how this asset class will fare after a "super-cycle" filled with gains. While there are a number of important factors at play, it is widely agreed that China will have a significant impact on the future of some of the world's most popular hard assets. What is not widely agreed upon, is...Read More

13 High-Yielding Commodities For 2013

December 18, 2012 / Aaron Levitt

As many individual investors have taken a cue from professional and institutional money managers, alternative investments have gone mainstream - and commodities lead the trend. Interest in this asset class has exploded as individual retail investors have discovered commodities' vast benefits, like low correlation to equities and bonds, inflation-fighting capabilities and their ability to profit fr...Read More

Boy Billionaire Spurs Aussie Coal Consolidation

June 15, 2012 / Ari Charney

The Australian coal industry underwent a record year of consolidation in 2011, with $19.5 billion worth of completed or pending deals at year's end. And this year, the industry could undergo further consolidation driven by bargain hunters hoping to take advantage of beaten-down shares.Australia is the leading global exporter of coal, and roughly 88 percent of the demand for this key commodity deri...Read More

New Hope Corp: Australia's Thermal Coal King Announces Auction

October 10, 2011 / David Dittman

Under the "New Policies Scenario" forecast by the International Energy Agency (IEA) in its 2010 World Energy Outlook (WEO) coal-fired electricity generation will grow to about 11,000 terrawatt hours from a current level of about 8,000 by 2035. Coal-fired power plants currently provide about 41 percent of global electricity. By 2030 that share is expected to grow to about 44 percent.According to th...Read More

All Aboard for Profits: What CSX Corp Tells Us about the US Economy and Global Coal Markets

April 26, 2011 / Elliott H. Gue

First-quarter earnings season is in full swing, with about one-third of companies in the S&P 500 having reported results. About 80 percent of these firms announced earnings that trumped consensus estimates, while 73 percent beat on the top line-a reminder that cost reductions aren't the only impetus for earnings growth.But analyzing corporate earnings involves more than just comparing results to W...Read More

The Case for Coal

December 10, 2010 / Elliott H. Gue

In November Caterpillar (NYSE: CAT) announced that it willacquire Bucyrus International (NSDQ: BUCY) for $92 per share in cash. The acquisition underlines the growth potential in global coalmarkets. Caterpillar already manufactures some mining equipment; that itwas willing to buy Bucyrus at a 30 percent premium reflects the majorgrowth opportunities in the coal mining industry.I agree with Caterpi...Read More

M&A Boom: The Next Takeover Targets in the Energy Sector

November 23, 2010 / Elliott H. Gue

On Nov. 15, 2010, Caterpillar (NYSE: CAT) announced that it will acquire The Energy Strategist Portfolio holding Bucyrus International (NSDQ: BUCY) in a cash transaction that amounts to $92 per share. The deal represents a 32 percent premium to the stock's closing price before the announcement. Readers enjoyed a return of about 150 percent in a little over a year.The transaction is the latest in a...Read More

Buy Coal-Related Stocks This Holiday Season

November 17, 2010 / Elliott H. Gue

In the third quarter, global oil demand touched a new all-time high of 87.6 million barrels per day. Demand should reach a new all-time annual high in 2011. Emerging markets account for much of this growth, but demand in developed markets is also bouncing back from recessionary lows.In fact, the last time global energy demand grew this quickly was 2004-05, a period that proved to be an epic buying...Read More

Coal Stocks: A Top Energy Pick for the Fourth Quarter

September 14, 2010 / Elliott H. Gue

In December 1952 a dense, smoky fog descended upon London-not anunusual occurrence. While living in London, my favorite variety wasfreezing fog, a light mist that would freeze to your carinstantaneously, creating traffic hazards and jams throughout southeastEngland.But the fog of 1952 was nothing like what London experiences today.In 1952 many Londoners still burned coal in their homes for heat; t...Read More

King Coal Still Reigns

July 10, 2010 / Hannah Hsu

Proponents of clean energy have become more vocal in recent years, but dirty coal isn't going anywhere anytime soon. Quite simply, replacing coal with a more environmentally friendly energy source isn't realistic.Coal remains the dominant source of electricity among developing economies; China derives 80 percent of its power from coal, while the black gold accounts for 70 percent of India's electr...Read More

Earning Their Keep

February 3, 2010 / Elliott H. Gue

Quarterly earnings season is always a busy time of year; most of the companies in my coverage universe report results and host conference calls over a period of two to three weeks.Fourth-quarter earnings season is busiest of all because management teams usually detail their outlook for the year ahead. But the importance of this information can't be overstated: Key trends that drive stock performan...Read More

Minding the Alternatives

January 8, 2010 / Elliott H. Gue

Alternative energy-related stocks are often an alluring to investors. And given all the talk concerning carbon regulation and the stimulus package over the past year, interest in the group has been running at a fever pitch.But despite the group's potential for long-term growth, I remained cautious on alternative energy plays for most of 2009-a contrarian view. The rationale behind my skepticism ha...Read More

Coal's Bright Future

December 9, 2009 / Elliott H. Gue

Coal has an image problem. Casual observers of energy markets view coal as an anachronism more at home in a 19th century factory than in modern developed economies.As I write this article, world leaders are attending a UN Climate Summit in Copenhagen, ostensibly to hammer out the outline of a new global pact to reduce carbon dioxide emissions. It's no secret that addressing global warming and clim...Read More

Coal's Bright Future

December 9, 2009 / Elliott H. Gue

Coal has an image problem. Casual observers of energy markets view coal as an anachronism more at home in a 19th century factory than in modern developed economies.As I write this article, world leaders are attending a UN Climate Summit in Copenhagen, ostensibly to hammer out the outline of a new global pact to reduce carbon dioxide emissions. It's no secret that addressing global warming and clim...Read More

MLPs in the Coalmine

December 4, 2009 / Elliott H. Gue

Coal has an image problem. Casual observers of energy markets view coal as an anachronism more at home in a 19th century factory than in modern developed economies.And environmental groups consider coal an anathema. Compared to most other power plant fuels, coal produces more of every imaginable pollutant-from suflur dioxide (SOX) and nitrous oxide (NOX) to mercury and particulate matter.As I writ...Read More

MLPs in the Coalmine

December 4, 2009 / Elliott H. Gue

Coal has an image problem. Casual observers of energy markets view coal as an anachronism more at home in a 19th century factory than in modern developed economies.And environmental groups consider coal an anathema. Compared to most other power plant fuels, coal produces more of every imaginable pollutant-from suflur dioxide (SOX) and nitrous oxide (NOX) to mercury and particulate matter.As I writ...Read More

Still the King

November 20, 2009 / Hannah Hsu

Peabody Energy (NYSE: BTU), the world's largest coal producer, reported better-than-expected third quarter earnings, primarily because of lower costs associated with US operations, increased volumes of metallurgical coal, and strong trading results.Net income and revenue were down 71 percent and 12 percent, respectively, hurt mainly by lower US demand. But despite a difficult economic environment,...Read More

Coal's Bright Future

August 7, 2009 / Elliott H. Gue

Coal-fired plants dominate global power generation, producing 42 percent of the world's electricity.And thanks to widespread use in developing countries, coal demand is projected to grow at nearly twice the pace of oil for the next two decades.Reducing reliance on coal-fired power plants has become the cause clbre for environmental groups concerned about global warming-coal-fired plants produce 43...Read More