Coal Stocks Sell Off w/Oil...Time to Buy?

Some Value Beginning to Emerge in the Sector

Hey everyone - my DM’s have been peppered with questions today about the aggressive selloff in coal stocks, so thought we would address it here before both the market close and before we finished our short release on pricing.

In short, coal stocks being down are just collateral damage today…it’s the oil market that is swinging the hammer.

Having spoken with two of my favorite folks in the patch today, I feel pretty confident saying that there’s not much to see here. Yes the OPEC headline was concerning in that there’s plenty of supply, and yes, China demand has been incredibly weak. But even going to $60-65 per barrel levels doesn’t really hurt anyone but the highest cost producers.

As such, I think the coal selloff here is creating some opportunity for new entries, so let’s take a look around…