Coal & Drillers
- Thread starter Landis82
- Start date
Any reason why?Quote from Landis82:
Outperforming the market this morning.
Hint, hint.
ACI, BTU, CNX, MEE.
DO, RIG, HP.
Quote from Landis82:
Outperforming the market this morning.
Hint, hint.
ACI, BTU, CNX, MEE.
DO, RIG, HP.
Every single one of those is down since 2/27.
I hate coal!!! (in my best tree-hugger militant voice).
Seriously though, the fundamental picture of natural gas is so absolutely bleak for the balance of this year and likely into the early part of next, that we are facing an overwhelming glut this summer. Natty is going to NEED to find demand and will only do that by falling much lower in the coming months to compete with coal-fired generation. This competition will also drive coal prices lower, however, due to the physical dynamics of natural gas production and storage, natural gas will win a price war between the two commodities out of necessity for demand.
I have not looked at coal equities, but I am warning that coal prices can and likely will fall much lower in the coming months.
Seriously though, the fundamental picture of natural gas is so absolutely bleak for the balance of this year and likely into the early part of next, that we are facing an overwhelming glut this summer. Natty is going to NEED to find demand and will only do that by falling much lower in the coming months to compete with coal-fired generation. This competition will also drive coal prices lower, however, due to the physical dynamics of natural gas production and storage, natural gas will win a price war between the two commodities out of necessity for demand.
I have not looked at coal equities, but I am warning that coal prices can and likely will fall much lower in the coming months.
Understood Papa.
Nat-Gas does provide a cheaper substitute.
But 3-straight months of manufacturing gains in China ( announced today ) along with JOYG re-affirmation of 2009 guidance have the COAL GROUP soaring today.
They are one of the greatest ( if not THE greatest ) trading sectors in the ENTIRE market!
Nat-Gas does provide a cheaper substitute.
But 3-straight months of manufacturing gains in China ( announced today ) along with JOYG re-affirmation of 2009 guidance have the COAL GROUP soaring today.
They are one of the greatest ( if not THE greatest ) trading sectors in the ENTIRE market!