Friday, September 08, 2017 12:54:37 PM
Being a financial consultant, a new neighbor recently touted this stock to me. This company and their product makes no sense. U.S. energy policy and environmental reg's have nicked coal industry but that's not the real story of why the coal industry and the use of coal for power generation are both in a death spiral. (1) Natural gas is a cheaper feed stock than coal. (2) While it's still a "dirty" fuel it produces half the CO2 a coal-fired power plant produces. (3) The cost of a CCGT plant is 40% to 55% less than a comparable coal-fired power plant and, (4) it can be built in half the time. Thanks to fracking, the U.S. has an abundance of gas reserves that will last well into the future - making for a stable commodity price. So my question is why would anybody invest in any company whose future well being is chained to a dying market. It's too late for my neighbor - his stock is so far underwater that it will never resurface to see the light of day. For me, I think I'll look for an investment that actually has an upside profit potential. While these posts are usually populated by investors, I thought it best to let you know that my post was made at the behest of my neighbor.
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