Peabody Energy Corp (NYSE:BTU)

Australian mining reserves in the Pilbara, which is 15x the size of Switzerland, are massive. The Chinese are pouring millions into the Australian economy in an effort to secure natural resources for the future. The resources game is going to emerge in the coming decades as more and more critical; soft power in the form of resources will provide more power to NGOs, companies like Peabody and countries like Australia who have an early play and a strong hand in this.

Coal is a disgustingly pollutant fuel and not one I, as an environmentally-conscious consumer, like. But the reality is that the #1 coal producer in the world is only destined to go up with increasing support for big businesses and a redefinition of the global economic landscape.

P/E is above what I would like at 37 but the truth is that world demand for coal will justify this price in the long haul.

good

< OIL => > COAL

Coal will have to rank as the top choice for alternate fuels of oil and natural gas. It will become the major fuel for most industry as oil becomes too expensive.

we will have to use coal. we will have to use everything in addition to oil.

Coal prices headed up - stockpiles down

Alternative fuel sources will be the key to oil independance. Coal is going to be at the forefront of that. Coal converted to liquid and gas alternatives will be the future automobile fuel.

US coal is king.

Despite all the technology in the world, the best way to create electricity is still by boiling water to power steam generators. Coal is by far the cheapest method to do this, and with the large reserves of Low Sulpher coal on hand by Peabody, they will continue to grow by keeping the cost of emissions control down for their customers.

coal to liquids

Coal is the one fossil fuel that is more plentiful than the others. The bet is agaist the rise of solar, wind, and other alternative energy sources as oil prices itself higher and higher.

This stock has had its ASSets Kicked by the market recently. That said, coal is the fastest growing type of fuel in the world. BTU has stated that China may become a customer in 2H07, which would be a HUGE catalyst for growth for this company.

Coal is what America has plenty of.

My question is why BTU as the coal play rather than ARLP? (Mind you, I think both will outperform.) ARLP has a lower PE, the same PEG, and pays a dividend of 6% compared to BTU's 0.6%.

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BTU is the nation's largest coal mining firm with strong mining and sales operation worldwide. Importantly, it has a strong emphasis on safety which protects the firm from both labor actions and litigation. The increasing focus on coal gasification and other clean coal technologies will add new dimensions to the firm's business in combination with general growth in non-petroleum based power generation facilities.

I think Peabody will be a major player in coal to liquid gasification.

coal to liquid head start

CITI just downgraded BTU. Looks like it's time to buy some shares!

Dirty coal will rock your world as cleaning it for use becomes easier and cheaper. And these guys have dirty coal. Ask Paradise - Mr Peabody's coal train done hauled it away.