Tuesday, 21 April 2015

ANR, BTU - the destruction continues

Whilst the broader market saw minor weak chop, it was just another lousy day for the coal mining stocks. Alpha Natural Resources (ANR) and Peabody Energy (BTU) closed lower by -5.7% and -3.9% respectively. The long term outlook for the sector remains bearish.

BTU, daily

ANR, daily


With the US 'war on coal' continuing, the coal sector stocks are still broadly falling.

There is simply nothing bullish in any of the coal miners, not least as commodities remain surpressed by a strong US Dollar.

*I do not expect Arch Coal (ACI), ANR, or Walter Energy (WLT) to remain in their current form.. given another 6-18 months.

However, I do believe BTU will be a survivor, along with Consol (CNX). Coal for energy use will decline, but coal still has high importance for many industrial purposes.