RE:Obama puts the boots to coalnetgenx wrote:
Obama announced his "climate change" initiative today, which is pretty clearly aimed at coal fired generators in the US. As I said earlier, I'm not a fan of the coal assets that ALS picked up in the deal with Sherritt, and I think today's news will only undermine the coal price going forward. I still think we see $12
1.) The coal assets are in Canada and not the US. In aregion where 50% (I guess that was the number that was stated) of the energy is produced by coal fired powerplants.
2.) The royalties are independent from price but bound to quantity used as far as I remember. So low coal prices should support more usage of coal.
No idea what prices we will or will not see but who bother of share prices going up and down 10%. I am no pro but I am not aware of a company with a similar that attractive risk return profile.
Just my personal thoughts. DYODD
carinthian