Coalpail.com Forum

Stock down 53% today after other huge recent losses.Market Cap.,the value of all their issued stock,is down to $14.42 million,(with an m.)$.78 per share.This is the world's largest coal company,with billions of tons of coal reserves worldwide.They are in bankruptcy,and are trying to emerge.Very risky investment,despite their incredible coal reserve.Only in recent America...

F, it's more about restructuring--they've just gotten way to big for their britches & it has nothing to do with this current administration. Their only concern is MONEY above & beyond most business's. 4 other coal conglomerates have shut down since 2005.

In June of 2008,Peabody was a $24 billion company.The stock closed yesterday down,at a total value of all stock issued of $12.5 million.Trump is a friend of coal.Recently,America was not.I hope the industry can recover some value,and stay viable.We won't miss coal unless it's gone.

When a company is operating under chapter 11 bankruptcy laws,which is what Peabody is doing,they intend to come out of it,reorganized.Secured creditors,like banks,get paid first.Then,any bondholders get paid.Next come the owners of preferred stock,if any was issued.If they all get paid in full,common stock holders get what is left.That can definitely be nothing.That looks like where this is going.Once reorganized,new common stock would be issued.Investing can be quite risky,huh?Be very careful when a company in bankruptcy looks cheap.Companies in bankruptcy are traded with a "Q" added to their stock symbols. Peabody symbol,for now,is BTUUQ.

It appears the top executives won't be hurt near as bad as the unsecured creditors provided the courts approve their exit strategy plan.
https://www.google.com/amp/www.cnbc.com/amp/2017/02/28/reute ... nuses.html

Paulie

There are people who still believe that stockholder corporations are owned by the stockholders.

lsayre wrote:There are people who still believe that stockholder corporations are owned by the stockholders.

You own your house until you stop paying the mortgage and/or property taxes.

Sonuvagun,They emerged from bankruptcy this morning.All old common stock "extinguished".New stock issued around $30/ share.Total market cap Around $550 million on new stock.Cyclone Debbie knocked them out of Australian met coal sales for approx 6 more weeks.Mines are up,but rail system damage makes delivery impossible.Rough start...New stock symbol is BTU.

Their newly issued stock is already nearly 8% down. Hopefully there will be brighter days ahead.

And what is in store for Arch, Walter Energy, etc...?

They are smaller fish,in a smaller pond now.Still alive is good.Still have the coal reserves.Learn how to be lean and mean.They will do it.Less steam coal,more met coal.

Peabody's newly issued stock is currently down 12.5% from its introductory price.

Cramer says if you want to play coal with less risk,buy railroads,Norfolk southern specifically.Timeliness for coal is still a big question