IB Net Payout Yields Model

Invest like me - only at Covestor.com

Japan Paying $200/mt for Coking Coal?

By -
Amazing report if its true. Looks like Japan is having to pay up get assets such as coking coal used to make steel away from the grips of China. Alpha Natural Resources (ANR) is likely our best play with their decent supply of coking coal. Puda Coal (PUDA) is a great speculative play in China. More to come on that stock.

This is the difference between coal and natural gas. China needs coal. China doesn't need natural gas.

  • JFE Holdings Inc. reportedly agreed to pay $200 per ton for coking coal in a three-month deal with Australian coal miner BHP Billiton Ltd.
  • The amount was higher than expected, said William Burns, an analyst with Johnson Rice & Co. Burns, who expected JFE and other companies to pay only about $150 per ton, said this shows how aggressive countries have become in competing with China for natural resources.
  • "China has become a black hole, and the Japanese steel makers are trying to lock up their supply," Burns said.

Comments

Mark said…
I saw that too. Talk about a strange situation - especially with China backing off on coal. Or so I thought.

Monster day on PUDA today - I wonder if the SCOK halo effect hit it.
March 5, 2010 at 3:36 PM
Mark Holder said…
It was part the halo, but also the fact that management gave a presentation on Thursday where they confirmed 2010 guidance of 1.1 to 1.50. They also provided some info on the other 6 mines they plan to consolidate so that was most likely the catalyst. It does seem like 1999 with the dotcoms but these companies actually have real earnings and valuable assets. Heck PUDA is buying these mines at 2x EBITDA. That is a major reason that the stock is soaring. Doubt its done.
March 7, 2010 at 5:33 PM
Coal said…
It is a bit of juggling game in the coal industry and coal prices from underground mines to ensure enough electricity and steel capacity worldwide while making sure the impact on the environment and people is minimal. www.coalportal.com
December 8, 2011 at 12:58 AM
Post a Comment

Popular posts from this blog

Occidental: Still Producing Too Much Oil

By -
Image
Though oil continues plunging, the oil giants continue producing more. For Q4, Occidental Petroleum (OXY) had roughly flat production. The worst part is that OXY plans to grow production by 2% to 4% in 2016. The stock has held up somewhat strong, but the inability to turn off the spigot remains troubling. Disclosure: No positions mentioned. Please review the disclaimer page for more details. 
Read more

ChargePoint: Low Quality Beat

By -
Image
  ChargePoint beat FQ2'22 revenue estimates, but the losses are mounting. The company guided up FY22 numbers partly due to acquisitions. The stock still trades at an estimated 21x FY23 number leaving limited upside for the stock and reinforcing why venture funds sold 13.8 million shares. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » After  solid FQ2'22 earnings ,  ChargePoint Holdings  ( CHPT ) has seen a nice bump in the stock. Now investors have to confront the valuation divide and deal with the past insider sales likely leading to future sales on any stock rallies. My  investment thesis  remains very Bearish on the EV charging station stock on any rallies into the mid-$20s. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details.  Update - Sept. 8 Be cautious when analysts strugg...
Read more

Aurora Cannabis: Deal Or No Deal

By -
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went,   Aurora Cannabis   ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha.  Disc...
Read more