Cloud Peak Energy (NYSE:CLD)

CAPS Rating: 3 out of 5


Player Avatar btukwh (30.06) Submitted: 2/27/2010 1:30:23 PM : Underperform Start Price: $15.20 CLD Score: +5.20

Yes, low sulfur. Still has the same mercury and green house gas production as your regular brand of coal. The downside is low Btu, high moisture, high calcium. In a coal furnace the white calcium slag sticks to the walls of the furnace and reflects heat. Read inefficient to burn This coal is also extremely fractious, dusty and burns on it's own. Kind of like gunpowder.

This is really bad stuff. There is also a loop hole in the benefit of low sulfur coal which makes it unattractive to plants with scrubbers. I'm guessing all coal plants will have scrubbers soon or be repowered. Give me a nice Illinois basin coal over this black dirt any day.

Member Avatar stanton17 (< 20) Submitted: 9/21/2010 11:38:09 AM
Recs: 0

Cloud Peak Energy (CLD) YTD Total Return: +20.67% and still trading below M*star's "Fair Value Estimate." Can it sustain gains like this -- in the face of such an uneven market -- is anyone's guess. But I'm currently a buyer (right, wrong or somewhere in-between...).

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