17th April Hot Stock Picks - Coal War Continue: Peabody Energy

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Peabody Energy

The Coal war battle for Macarthur has taken a sudden turn last week when Arcelor Mittal and Posco Steel threw in their lot for US based Peabody after it launched a third bid at the Australia producer. Finally the scale has tipped in favour of Peabody and unless a new bid offer comes from Singapore listed Noble Group , Australia Miner New Hope Coal and Swiss Mining giant Xstrata. Peabody has made a third offer for Macarthur.

Technically, Peabody turned short term bearish following friday’s Dow Jones drop on high volume. This could be due to the Dow Jones weak sentiment. I am looking to see if the price can hold at the lower support line of the triangle but i am not comfortable with the high volume that accompany the price drop . If Peabody successfully acquire Macarthur, it would be beneficial for the company to tap into the growing asia market and ride the wave of China’s insatiable demand for coal and steel.

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