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Not crazy about this guys politics but at the 7 minute mark he talks about the value of coal and it's use in converting it to diesel fuel at a cost of $1.28/gal
http://www.youtube.com/watch?v=4VS6gV7EtH0
Not crazy about this guys politics but at the 7 minute mark he talks about the value of coal and it's use in converting it to diesel fuel at a cost of $1.28/gal
http://www.youtube.com/watch?v=4VS6gV7EtH0
The consolidation of the States into one vast empire, sure to be aggressive abroad and despotic at home, will be the certain precursor of ruin which has overwhelmed all that preceded it. --General Robert E Lee
Mamboni, I think your points in the OP are valid.
I know a guy who works at a coal fire power plant, they are currently running (last I heard) on Nat Gas, because it is so cheap due to fracking but this IMO will not last. I can't imagine this is the only coal plant doing so.
As you said, I cannot envision a scenario where in the next 10 years oil will not be over 200 per barrel, I can't remember the exact figures off the top of my head but it's something like for every $10 increase in the price of oil, GDP drops by 1% (maybe it's .1) but either way this is significant, and I think if it gets to that point ecomentalists will take a back seat to prevent an uprising.
As for Nat Gas, I think production will be drastically less due to output declines, or lawsuits over the next few years which will make coal prices more favorable.
From what EoA says, if coal miners are scaling back this reminds me of what Nat Gas producers were doing when the price reached a low in the middle of this year and this eventually will put a floor under prices.
I share your sentiments too about some portfolio diversity, because like you I am probably 3/4 precious metals and miners. So I could stand some exposure to a different sector but for moral reasons I can't bring myself to invest in a lot of blue chip companies even if I think they present good dividends or upside potential.
I would also like to add that while I am wary of saying "it can't go any lower", I also think the time to buy companies is whenever they have sound business models and have suppressed prices due to nothing more than politics which creates a distortion.
http://www.truthinourtime.com/
"Speed is the only truly modern pleasure" - Aldous Huxley
Errosion Of Accord (10th October 2012),mamboni (10th October 2012)
Yes, it really is that simple, unless the wars in middle east isn't fought over oil resources, and for that very reason America is kept oil dependent...Originally Posted by collector
The problem with coal to diesel is that no one is doing it. There is no infrastructure. The plants have to be built. Peabody and... if I remember right, Cloud Peak have been looking at building plants.
"Democracy is two wolves and a lamb voting on what to have for dinner. A republic is a well-armed lamb contesting the outcome." --(Attributed to) Benjamin Franklin
ANR and ACI are exploding higher up 15% today alone! What is going on? I wish I had bought more dammit!
Tricks and treachery are the practice of fools, that don't have brains enough to be honest. -Benjamin Franklin
Sincerity makes the very least person to be of more value than the most talented hypocrite. -Charles Spurgeon
Whoa, kudus on the call. Too bad I was slow on the trigger.
You should start your own newsletter
http://www.truthinourtime.com/
"Speed is the only truly modern pleasure" - Aldous Huxley
Believe me - it was dumb luck. But I'll take dumb luck over smart & wrong anytime.Whoa, kudus on the call. Too bad I was slow on the trigger.
You should start your own newsletter
Tricks and treachery are the practice of fools, that don't have brains enough to be honest. -Benjamin Franklin
Sincerity makes the very least person to be of more value than the most talented hypocrite. -Charles Spurgeon
I disagree, you made the analysis that coal was undervalued, and I believe you made a good call. However what led you to do the analysis in the first place may have been dumb luck, but I think it has more to do with instinct in your case, you have after all been analyzing economic events for many years, instinct is the accumulation of knowledge that you have gathered.
mamboni (11th October 2012)
*shrug* 25 salaried laid off out west yesterday. (ANR)
"Democracy is two wolves and a lamb voting on what to have for dinner. A republic is a well-armed lamb contesting the outcome." --(Attributed to) Benjamin Franklin
Prophecy Coal (PRPCF.PK in the US and PCY in Canada) is also up 15-20% today. They have 2 billion tons of near-surface thermal coal in Mongolia, plus they own 22 million shares of Prophecy Platinum, which accounts for all but $5 million of their market cap. Prophecy Platinum owns the Wellgreen deposit in the Yukon, which has $30 Billion in recoverable PGM's, nickel, copper, and gold. Prophecy Coal is getting the last pieces of the puzzle together for a 600 MW mine-mouth power plant, with plans to expand it to 4200 MW for sale of electricity to China.
mamboni (11th October 2012)
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