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Peabody Energy Corporation

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BTU trade ideas

When enough is enoughPeabody Energy is poised for a significant re-rating driven by transformative acquisitions, robust financial performance, and favorable market dynamics. With the stock trading at a substantial discount to peers and its historical multiples, investors have a rare opportunity to capture value in a sector undergoing strategic evolution. 1. Transformative Acquisition of AngloAmerican’s Assets Peabody’s recent acquisition of AngloAmerican’s assets in Australia’s Bowen Basin is a game-changer for its metallurgical coal segment. This acquisition includes four world-class mines—Moranbah North, Grosvenor, Aquila, and Capcoal—renowned for producing some of the world’s highest-quality steelmaking coal, with approximately 80% of output being hard coking coal. • Long-term Growth Potential: The mines boast a combined mine life exceeding 20 years, with 306 Mt of marketable reserves and 1,700 Mt of additional coal resources. • Enhanced Production Capacity: Metallurgical coal production is set to rise from 7.4 Mt in 2024 to 21–22 Mt by 2026, generating substantial revenue and solidifying Peabody’s leadership in high-grade steelmaking coal. • Complementary Fit: These assets align seamlessly with Peabody’s existing Australian operations, enhancing efficiency and expanding market reach. 2. Favorable Valuation and Oversold Signals BTU trades at an attractive 2.4x NTM EV/EBITDA, well below peer and historical averages, and a price-to-book ratio of 0.6x, offering a classic value investment opportunity aligned with Warren Buffett’s philosophy. • Oversold Indicators: The stock is down 40% from recent highs and nearing oversold territory, supported by RSI trends. A ‘golden cross’ pattern has recently been observed which could be a catalyst for a turnaround. • Strong Technical Support: A robust support level at $18/share has been repeatedly tested, reinforcing downside protection for investors. 3. Resilient Financial Profile Peabody remains a cash-generating powerhouse, consistently delivering strong free cash flow. Key financial highlights include: • $0.8 billion in cash (nearly 30% of market capitalization). • Negative net debt for over 2.5 years, providing exceptional financial flexibility and stability. 4. Earnings Momentum and Market Sentiment Despite recent stock price declines, the fundamental outlook for Peabody remains strong: • Earnings Growth: EPS is projected to grow nearly 10% by 2026, with broker forecasts consistently revised upward. • Upcoming Catalysts: The earnings report scheduled for 6 February could act as a significant price trigger, particularly if results surpass expectations.
NYSE:BTULong
by barneysimps_on
Commodities: Coal Recovery Cycle Soon: Peabody Energy BTU ARCHColumn: How a bankruptcy filing shielded a big coal company from California’s climate-change lawsuits Peabody Energy, the nation’s largest private-sector coal company, joined several of its fellow coal producers in bankruptcy in 2016. Its main goal was to wriggle out from under more than $10 billion in debt it had incurred to expand, even as demand was sharply falling. But its bankruptcy filing has provided a collateral benefit: Peabody has been ruled immune from a lawsuit brought by three California jurisdictions blaming it and dozens of other fossil fuel companies for a sea level rise related to climate change. The ruling came last month from U.S. Bankruptcy Judge Barry S. Schermer of St. Louis, who presided over Peabody’s bankruptcy. On Monday, the California plaintiffs — the counties of Marin and San Mateo and the city of Imperial Beach — filed a notice that they’ll appeal Schermer’s ruling to federal court.
NYSE:BTULong
by noam_chom
1
BTU Long • The optimum strategy for BTU: Momentum 160 • Start price: 28,90 • Current stop-loss: 26,785 • Trailing stop-loss: ATR(14) x 1,4 • Projected annual return: +132% • Take profit: not installed • Average trades per month: 1 • Average profit per 1 trade: +6,74% • Strategy win-rate: 47% • Technical analysis applicability for 3325 technical strategies: 73,1% • Days for backtesting: 1125 • Timeframe for testing: 1 day • Long 55% • Short 41% • Neutral 4% Stable long-term profit for FOREX, CRYPTO, STOCKS based on math backtesting algorithm. Instant optimization and analysis of 3325 technical strategies
NYSE:BTULong
by Trading_investing_2021
1
$BTU target hit looking Long to $34This is kinda fun following one stock to pick timing and levels for highs/lows. So far, we've gotten the swing high price & time to go short. Now it's hit the low I was expecting, BUT, the timing is not until Thurs. 12/9. Still, I have that today is the low for the week and it's 5 cents from the number I had earlier, so not worth being short. Especially with today's strength and indexes down 2%. The upside target is 16% up from the low, = $34ish. I'll give the next date after Thursday. One date at a time....
NYSE:BTULong
by JenRz
1
$BTU Hit tgt now short till $29.27ishKicking myself a bit today for not reviewing BTU when it was at the top of my calendar for today. (See my prior idea on BTU going to $32.xx with today's date as targets.) I do dowsing, and when I get a target hit at a particular date that was given in my reading, it almost always implies a reversal or resistance of some sort. Sometimes very lasting highs/lows. I'm asking how many percent BTU will reverse down from today's HOD and getting 11%. Target is $29.27 The next date is 12/8. So watch for that price around that date.
NYSE:BTUShort
by JenRz
3
$BTU long idea$BTU is a coal mining company which is a commodity that is high in demand right now. Coal runs power plants and with Europe restarting their power plants, the demand might send this sector into a supply shock. Also ironically, in order to power/charge electric vehicles, electricity must be produced which is done by power plants that use coal! This Inflation Act that was just passed will definitely be boosting EV sales given the tax credit provided by this bill. Technicals point at targets of 25, 26 and 30. OptionsSwing Analyst Daniel Betancourt
NYSE:BTULong
by optionsswing
3