BTU was recommended by The Energy Strategist at $46.44 in Investment Digest issue 679, dated September 15, 2010.
“Cheap natural gas and new restrictions on methane emissions from coal operations will accelerate the phase-out of coal-fired power in the U.S. The Energy Information Administration (EIA) reported earlier this year that nearly 27 gigawatts (GW) of power — 8.5% of all coal-fired electricity in the U.S. — are set to be retired over the next five years. The 9 GW that was set to be retired in 2012 represents the largest retirement of coal-fired power in the nation’s history.
“For all the talk, the potential for ‘clean coal’ is low over the next decade. While there are a number of technologies that could be used to capture the carbon emissions from a coal-fired power plant, they drive the generation costs up too high to be economical. Thus, investors should not anticipate that new developments into clean coal technologies will soon improve the prospects for the domestic coal industry. [Bottom line,] the outlook is truly negative for the foreseeable future so I advise investors to shift assets toward more-attractive opportunities elsewhere in the energy sector. I will significantly reduce exposure to coal in our portfolios, effective today. Sell Peabody Energy Corp. (BTU, $25).”
- Robert Rapier, The Energy Strategist, November 14, 2012