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Good morning. What are your thoughts about coal and natural gas going forward - and if we do get a nice sustain continuous recovery/bull cycle. China/India and EM are growing crazy and may need more coal/energy. Just want to know because BTU - Peabody Energy Corporation (cusip 704549AF1) has a very nice yield bonds ~6.9% for mid term. Largest coal company in the world and has coal mills all over the world
I own GASFX which is a gas utility index owning both gas and eletric companies. It has a low ER (.69), is NTF, and pays a dividend of 2.4%. Hennessey recently acquired all of FBR funds of which GASFX was one.
I like nat gas. I own KMR, APAJF (Australia's largest nat gas pipeline), KMI and a few other assorted gas-related plays. I don't know what I'm going to do but I have pondered buying yet more in the way of pipeline-related because I just think that - because of regulation and other factors - you're just not going to see much building of pipelines going forward. No one can replicate what a lot of these pipeline companies have built, but I just don't think you're going to see much building of pipelines at all for a while - whether they're needed or not.
Coal I think still has headwinds. Maybe the bonds are fine I dunno but I am not going to try to pick a bottom on the equity.
Reply to @TSP_Transfer: Buffett has a remarkable record as an investor, but I think he's a crony like many other cronies throughout time. I tend to think Buffett probably didn't intend to go that route, but I think Buffett is probably playing the game that he thinks needs to be played.
It would not surprise me if Buffett's continued rail success will go along with continued delays in pipeline building (and that's not the only reason - but I just think energy infrastructure (aside from solar, and I'm not against solar but I think heavily favoring it is not the answer) is not going to see much buildout in the foreseeable future. In terms of rail, I own CNI. Less regulation for the financials, more regulation for other industries.
Comments
Patriot Coal/bankruptcy/bondholders
Coal I think still has headwinds. Maybe the bonds are fine I dunno but I am not going to try to pick a bottom on the equity.
It would not surprise me if Buffett's continued rail success will go along with continued delays in pipeline building (and that's not the only reason - but I just think energy infrastructure (aside from solar, and I'm not against solar but I think heavily favoring it is not the answer) is not going to see much buildout in the foreseeable future. In terms of rail, I own CNI. Less regulation for the financials, more regulation for other industries.