Peabody Energy Corp. (BTU) is back on my buy list, this time at $54 per share.
BTU owns interests in 28 coal operations located in the US and Australia. The mines in Australia are particularly well situated for selling its coal to China and India. It produces both metallurgical and thermal coal. It also specializes in operations that turn coal into a variety of other fuel forms.
BTU is in a great position to export to China and India. Since China and India are dominant players in the import market, this is important.
In January, when I bought 1/4 of my target position for $60 per share, I was particularly interested in the PEG which was 1.2 at the time. Now is is just over .8, so I ready to buy another 25% of my target for BTU.
BTU has strengths in other areas too. Such as good revenue growth, good cash flow, high return on equity, and stockholders’ equity (“net worth”) has increased by 23.72% from the same quarter last year.
David White, recently included BTU in his article regarding 4 Oversold Coal Stocks that are a Buy.
I have raised my target price to $80 per share, from $75 last January.