In the following video, Fool.com energy contributors Tyler Crowe and Aimee Duffy discuss a second straight record quarter for Arch Coal (NASDAQOTH: ACIIQ ) . With many in the U.S. looking at coal as a dying industry due to the boom in natural gas, is Arch Coal proving the naysayers wrong? Is this only a temporary situation for the company due to pricing, or could the outlook for the coal industry be better than predicted? Tyler tells investors what Arch Coal is doing to beat expectations and deliver for shareholders, and gives us a good look at where the coal industry is heading.
The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has authored a special new premium report detailing exactly why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.
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Report this Comment On May 10, 2013, at 5:26 PM, Peter405 wrote:
Great recommendation on ARLP ( Alliance Resources) !
Report this Comment On May 10, 2013, at 11:43 PM, MARKAAA wrote:
Been in the markets for decades and with coal, it is either out of favor or in favor and forget about global warming because as seen on news, we are back in global cooling which is normal every 30 years for that.
As for coal, CHINA will be using it more and more this century, India and many other nations and it is about to pick up in the States as well which is why shorts did so well couple years or so ago and even last year but now it is trending sideways and according to Morgan Stanley, is about to turnaround as you can see from May of this year but forgot title of that article.
Either way; ACI and ANR have the best chances of increasing the most in stock prices not that they are the best companies in coal but they are in no danger of going out of business this decade which is why I have a target of 300% increase in price for next year and I think it will be before winter is over but that in perspective is not that much $22 for ANR and not the $60 and perhaps $100 it was before so look at it that way but 300% is fine with me and I own near bottom and above some and will buy on pullback and trade this summer since it will go up and down but average sideways until fall and then it starts up and continues a couple two or four years etc back to those $60 areas overtime but is just my opinion and I think only dumb money would be short now because they will only lose. They missed the smart money few years ago when time to short but I do not short so just went long other stocks and waited since do not gamble.
Nice article btw.
Mark,
Report this Comment On May 11, 2013, at 7:09 AM, MARKAAA wrote:
I think the young people in this video are doing a fine job considering they are just starting out and will soon learn that coal in the USA will pick up in a huge way and once that happens, they will get better because we all learn as we go and that is all of us.
Coal demand will increase in USA markets next year so coming very soon however; it is true that huge demand will be in China at least the next three or four years and rest of century.
Coal in States will pick up starting November and reach peak in two years then stay flat depending on how quickly politicians are willing to let up on profit making on the global warming bull but when the people realize by 90% it was normal phase and we are in fact in global cooling again, demand of coal will pick up again because it's less expensive and that will take care of that but either way, 300% is not bad for me to make if I am the only one who makes it on ANR and ACI in less than a year and I sure will do it going long as posted above but I have to say it is JMO
This was a fine article for young people but had they been 50 years old, I would have called it poor and I'm not sure how well free speech goes on around here not that I care because I'll use it.
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