http://ift.tt/1LTU45O
"Soros, whose $24 billion fortune is built on successful trading, appears to have purchased*several million dollars’ worth of stock in coal producers Peabody and Arch Coal according to filings reviewed by Britain’s The Guardian newspaper. Thermal coal has been hit hard by shifting utility company preferences for other power sources, while metallurgical has been hammered by the downturn in China which has hit demand for steel and other building materials. 2014 was a terrible year for coal producers, and 2015 has not shaped up much better.All of this leads one to wonder what a savvy trader like Soros sees in coal. There are a few possibilities. First it’s possible that Soros is simply looking for a short-term bounce in beaten down coal stocks that have been left for dead. After all, the stocks of virtually all coal miners now trade for a fraction of what they did only a few years ago, and investors may be overly pessimistic about the short-term outlook in the sector.Soros could simply be looking to trade on optimism the stocks related to his own investment, or even simply trying to pick the last coal stocks that will be left standing. In particular, news of Soros’ investment immediately led to a surge in the stock price of many coal firms which created an instant paper profit for Soros. It’s possible that the billionaire was simply looking to capitalize on a bounce he expected from the news, and then sell his shares as the news hit. If so, he did well. Given recent prices for the stocks, Soros could have made up to a 100 percent on his investment – perhaps as much as $2 or $3 million dollars."
"Soros, whose $24 billion fortune is built on successful trading, appears to have purchased*several million dollars’ worth of stock in coal producers Peabody and Arch Coal according to filings reviewed by Britain’s The Guardian newspaper. Thermal coal has been hit hard by shifting utility company preferences for other power sources, while metallurgical has been hammered by the downturn in China which has hit demand for steel and other building materials. 2014 was a terrible year for coal producers, and 2015 has not shaped up much better.All of this leads one to wonder what a savvy trader like Soros sees in coal. There are a few possibilities. First it’s possible that Soros is simply looking for a short-term bounce in beaten down coal stocks that have been left for dead. After all, the stocks of virtually all coal miners now trade for a fraction of what they did only a few years ago, and investors may be overly pessimistic about the short-term outlook in the sector.Soros could simply be looking to trade on optimism the stocks related to his own investment, or even simply trying to pick the last coal stocks that will be left standing. In particular, news of Soros’ investment immediately led to a surge in the stock price of many coal firms which created an instant paper profit for Soros. It’s possible that the billionaire was simply looking to capitalize on a bounce he expected from the news, and then sell his shares as the news hit. If so, he did well. Given recent prices for the stocks, Soros could have made up to a 100 percent on his investment – perhaps as much as $2 or $3 million dollars."
[text] Is George Soros Betting on the Long-Term Future of Coal? | OilPrice.com
Aucun commentaire:
Enregistrer un commentaire