Tuesday, July 17, 2012

Wilbur Ross Talks Coal Stocks (KOL; BTU; ACI)

From GuruFocus:
Vulture investing guru Wilbur Ross has considerable experience in the industry with his time spent involved with International Coal (ICO).

If you are a value investor you may now also be looking at coal companies which have stock prices in many cases down 70% from recent highs.

Ross was on CNBC and had some comments on coal:

- The downturn in coal is secular and not just cyclical.

- There has been structural change, the EPA has made a decision that means there won’t be any more coal plants built.

- Natural gas needs to be at least $4/mcf for coal to be even close economically....MORE

That last bit seems high, utilities slowed or stopped switching the first time natty traded above $2.80: