Coal has a place, but value being shred

Sep 22nd, 2008 – Comment

Hello Lou, I notice that almost all of your e-mails are from men. I hope that you are not going to be intimidated by this tall, adorable and intelligent Russian lady investor! It seems that the coal stocks have taken quite a beating lately. I understand that Phoenix Coal (PHC TSX) has utility companies as […]


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Shareholder value being shred

Shareholder value being shred

Hello Lou,

I notice that almost all of your e-mails are from men. I hope that you are not going to be intimidated by this tall, adorable and intelligent Russian lady investor!

It seems that the coal stocks have taken quite a beating lately. I understand that Phoenix Coal (PHC TSX) has utility companies as its clients, unlike most of the other coal companies which supply the steel industry. Can you please analyze this company for me.

Das Vidania,
Svetlana

Hi Svetlana,

You are right when you say that interest in the economy and investments tends to skew male. The subject doesn’t discriminate, on the basis of gender, creed, race, nationality, or even intelligence. As a matter of fact neither do I so welcome aboard!

Phoenix Coal Inc., PHC TSX has been selling off since it got listed in the summer of 2008. Granted it wasn’t the best time to come to market and they did raise over $100M to push their business plan of acquiring and expanding their thermal coal reserves in the Illinois Basin of the U.S. which includes western Kentucky where they have operations.

Which is all good and we all know that coal has a place in our energy future. But the stock is in a down trend and that means shareholder value is being shred. If you like the story track PHC for a turn but be cautious there’s lots of work to be done to turn coal into diamonds!

Happy Capitalism and Das Vidania!

Categories: Energy
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