Peabody Energy Corporation (BTU)

[LouisDesyjr]

What next?

I think the stock is going to trade sideways for a number of weeks, until one of the asset sales kicks the support out from the stock.

While the financial statements are still showing some equity for the common shares, I expect at some point there will be a big loss on sale of some assets or a write down, and then the equity will get wiped out.

There may still be some swings left to trade, especially with the muppets thinking the common shares are a great buy now that the company is in bankruptcy, but in the end after the Chap 11 is done, it will be a disaster for the existing common shares.

Louis J. Desy Jr.