3 Reasons to Sell This Coal Giant

Taylor Muckerman, The Motley Fool
Updated

Several headwinds have cropped up in the coal market here in the United States over the past year or two. Even though Peabody Energy appears to be head and shoulders above its direct coal competitors, these issues have taken their toll on the company's recent performance. Determining whether these issues will abate or continue is critical when analyzing this company for investment purposes. A few of the reasons are detailed in the following video and include:

  • The continued suppression of natural gas prices.

  • Possible exportation of LNG on a meaningful scale.

  • Overall negative perception of the coal industry because of possible environmentally damaging effects.

Can Peabody overcome these potential gravitational forces?
The coal industry in the United States has been in a state of flux since the arrival of a cheaper alternative for energy production: natural gas. Exports are becoming a much bigger part of the domestic coal landscape, and Peabody Energy has deals in place to get its cheaper coal from the Powder River and Illinois basins to India, China, and the EU. For investors looking to capitalize on a rebound in the U.S. coal market, The Motley Fool has written a special new premium report detailing why Peabody Energy is perhaps most worthy of your consideration. Don't miss out on this invaluable resource -- simply click here now to claim your copy today.


The article 3 Reasons to Sell This Coal Giant originally appeared on Fool.com.

Taylor Muckerman has no position in any stocks mentioned. The Motley Fool recommends Nucor and Southern. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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