Peabody Energy Corp (NYSE:BTU)

CAPS Rating: 4 out of 5

A private-sector coal company which conducts its business through four principal operating segments: Western U.S. Mining, Eastern U.S. Mining, Australian Mining, and Trading and Brokerage.

Recs

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Player Avatar jspatel (< 20) Submitted: 7/10/2012 9:01:36 PM : Outperform Start Price: $22.20 BTU Score: -33.33

BTU is best of breed coal, with Australian operations that will likely cater to Asia's coal needs, while sporting a healthy balance sheet relative to its competitors which will help it ride out the storm while paying a 1.4% dividend that is safe (9% payout ratio). I don't think coal is going anywhere, global demand remains and natural gas will go back up in price here soon.

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