- The recent Supreme Court ruling gives coal miners some hope of reduced regulations on the industry.
- The news arrived too late for the coal industry, as investments have already been made to replace coal power plants.
- Until Peabody Energy turns around the negative EPS trend, investors should avoid the stock.
Coal stocks remain in an absolute crash mode with a
limited number trading above $1. The sector rallied on Monday due to a
Supreme Court
ruling
that knocked down a hurtful rule for coal enacted by the Environmental
Protection Agency in 2011. Coal stocks rallied on the news, but it isn't
clear whether the overturning of the EPA air pollution rule will have
any impact on the market considering the late date of the overturning.
The power plant market has already shifted toward cheap natural gas, but
if any stock has the potential to benefit from a Supreme Court
decision, it would be
Peabody Energy (NYSE:BTU). Looking at the chart below, one can see the damage of the last three years.
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full article on Seeking Alpha.
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