A new report by Cowen & Co analyst Daniel Scott focuses on the battered coal industry. Despite the dreary outlook in the space, Scott explains that some coal stocks are better-positioned than others to weather the downturn.

In The News

The Supreme Court’s ruling against the Mercury and Air Toxic Standards (MATS) plan was a positive for the coal industry, but it provided little support to share prices. According to Cowen, pressure from natural gas has been heavily weighing on the coal industry. At current prices and current production rates, natural gas eclipsed coal for the first time ever in April in terms of generation.

In other news, the weakening financial environment has made self-bonding capacity even more critical for coal companies. Cloud Peak Energy Inc. CLD 0.7% and Peabody Energy Corporation BTU 1.5% both recently announced a renewal of self-bonding capacity in Wyoming, while Alpha Natural Resources, Inc. ANR 0.39% reportedly lost its eligibility.

Q2 Estimates

Cowen is…

Click here to continue reading

Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!