This sounds like an investment opportunity to me: China and India plan to increase coal imports by 78%, as reported in Bloomberg Businessweek.

Yesterday, I wrote about the worldwide shortage of copper, in the neighborhood of 500,000 metric tons. Now we have another commodity for which demand will be strong next year.

Continue reading China, India to Increase Coal Imports by 78%

China, India to Increase Coal Imports by 78% originally appeared on BloggingStocks on Tue, 14 Dec 2010 10:00:00 EST. Please see our terms for use of feeds.

"Peabody Energy (NYSE: BTU), the largest private market coal firm in the world, had a great 2008," says Jack Adamo who has recently added the stock to the buy list of Insiders Plus.

"Peabody has extensive holdings in the U.S. and Australia, the latter serving the China/Asia Pacific markets. It sells steam coal for heating and utility use, and coking coal for steel making.

"Peabody has had some decent iInsider buying in the last few months -- about 30,000 shares -- not enough to get too excited about, but encouraging. There were also 27,000 options exercised, most of it at very low prices, for which the holder took no profits.

"That's also a good sign, particularly since those exercises come with a tax bill, and shares weren't sold to pay it. It implies faith the stock will rise.

Continue reading Coal insiders eye Peabody (BTU)

Coal insiders eye Peabody (BTU) originally appeared on BloggingStocks on Fri, 20 Feb 2009 13:40:00 EST. Please see our terms for use of feeds.

Last December, over 100 stocks were featured in our Top Picks for 2007 report. Now, at mid-year, we turn to the 20 advisors whose picks showed the strongest gains to get an update on their previous picks, as well as a new favorite stock for the second half of the year.

Elliott Gue, editor of The Energy Strategist, chose Energy Metals Corporation (ASE: EMU) as his top pick for 2007. The stock has gained 100%; the company received a takeover bid from SXR Uranium One (OTC: SXRFF) on June 4, 2007.

For his new top pick, the advisor says, "One of my favorite sectors right now is coal. While coal isn't the most environmentally friendly of fuels, it accounts for more than 50% of all energy produced in the U.S. and has an even higher share in developing markets like China.

"I see little chance that coal will lose its pre-eminent status over the next decade. In addition, new uses for coal are emerging. In the U.S., the government is looking to promote the use of coal-derived liquid fuels with a series of subsidies and tax breaks; even the military is exploring the use of coal-derived fuels.

"My top play on the coal sector is Peabody Energy (NYSE: BTU), the largest coal miner in the U.S. The company is spinning off its high-cost mining operations in the eastern U.S. into a separate firm.

"Meanwhile, Peabody has the largest position in the prolific and rapidly growing coal-producing basin of the West, the Powder River Basin. Even better, the company recently acquired Australia's Excel Coal -- Excel is a major exporter of Australian coal to China. Chinese coal demand is growing rapidly, and Peabody is well placed to take advantage."

Top 20 advisors: Elliott Gue is fired up over coal originally appeared on BloggingStocks on Mon, 18 Jun 2007 10:30:00 EST. Please see our terms for use of feeds.