1. Same story, different day...........year ie more of the same fiat floods the world
    Dismiss Notice
  2. There are no markets
    Dismiss Notice
  3. Week of 6/24/2017 Closing prices & Chg Over Last Wk---- Gold $1256.40 Silver $16.64 Oil $43.01 USD $96.94
  4. "Spreading the ideas of freedom loving people on matters regarding high finance, politics, constructionist Constitution, and mental masturbation of all types"
    Dismiss Notice

Why I'm about to buy BTU

Discussion in 'Real Estate & Other Investments' started by ErrosionOfAccord, Oct 22, 2017.



  1. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    Opened an Ameritrade account today and will be buying a block of BTU, here's why. draglines.png
    The west black line of the rectangle represents nothing but my ineptness with Paint. The north, east and south black lines represent the approximate current pit boundaries. The Google Earth photo is at least a year old. The yellow rectangle represents an area that is currently mined out. The arrows represent the direction of mine progress. Currently the mine is being high graded, in other words, they are shooting for the highest profit margin. The yellow area was mined using shovels in order to prepare the area to be mined with draglines such as the one in the red circle. The current east to west configuration of the pits probably averages about 2.75:1 strip ratio. over the course of the next couple of quarters I expect a dragline to start mining to the west just west of the yellow rectangle where the strip ratio is about 1.25:1. This will do a couple of things; A) it will lower cost significantly B) It will put pressure on other mines in the region. I'm just thinking aloud but in my best guestimation BTU, which is already the largest producer in the PRB is looking to increase their value by decreasing the value of other properties by putting them out of business. I'm hoping like hell to get my block purchased prior to the 25th when the quarterly results come out. All is pending a money transfer to Ameritrade.

    In other news Revelation Coal is purchasing the old Alpha (now Contura) mines in the basin. They are about to take a blow to the nuts IMHO because the Belle Aye mine is going to be hurt by this BTU move.

    As always DYODD and comments are welcome.
     
  2. EO 11110

    EO 11110 He Hate Me Mother Lode

    Joined:
    Jul 31, 2010
    Messages:
    12,216
    Likes Received:
    8,239
    Trophy Points:
    113
    so you are seeing an increase in supply? how's the demand side look?
     
  3. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    Demand side is fine with gas at $2.91 in the shoulder months. Also postulating that some supply will go away when these other mines feel the pinch.
     
  4. Goldhedge

    Goldhedge Moderator Site Mgr Site Supporter

    Joined:
    Mar 28, 2010
    Messages:
    29,148
    Likes Received:
    33,759
    Trophy Points:
    113
    Occupation:
    Retired
    Location:
    Planet Earth
    BTU's a gas $30/share
     
  5. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    Saying you wouldn't do it?
     
  6. GOLDBRIX

    GOLDBRIX God,Donald Trump,most in GIM2 I Trust. OTHERS-meh Site Supporter Platinum Bling

    Joined:
    Apr 4, 2010
    Messages:
    5,872
    Likes Received:
    5,748
    Trophy Points:
    113
    Gender:
    Male
    Well, You are close to historic lows per share. 2015 was the last dividend of o.oo25 cents per share.

    Barry done alot of damage to coal users in the United States whether a recovery is close at hand under a TRUMP Administration I feel is too soon to call.

    It will be a hellofa Move if you hit.

    I'm in SJT a < $8.00 per share with a MONTHLY DIV $0.07 per share. NatGas w/ Season Coming, 11.23% annual DIV. return, Popularity/Demand of NatGas increasing with improving economy.

    Right now I'm re-investing the DIVs for more shares of SJT.

    JMO
    DYODD,
    GLTA,
     
    Mujahideen likes this.
  7. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    Don't forget BTU emerged from BK last spring.
     
  8. Mujahideen

    Mujahideen Black Member Midas Member

    Joined:
    Mar 31, 2010
    Messages:
    8,575
    Likes Received:
    13,234
    Trophy Points:
    113
    Gender:
    Male
    Occupation:
    Silver stacker
    Location:
    America!
    What are you expecting this stock (sjt) to do? Do you see it reaching $10 by next year?
     
  9. GOLDBRIX

    GOLDBRIX God,Donald Trump,most in GIM2 I Trust. OTHERS-meh Site Supporter Platinum Bling

    Joined:
    Apr 4, 2010
    Messages:
    5,872
    Likes Received:
    5,748
    Trophy Points:
    113
    Gender:
    Male
  10. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    I plan on being out of it by this time next year. My take is that cost per ton will go down for the PRB during the next three quarters and induce increased share prices. Have been watching this progress and probably should have pulled the trigger last quarter. I don't have inside information, just watching the progress and see what's going on.
     
  11. GOLDBRIX

    GOLDBRIX God,Donald Trump,most in GIM2 I Trust. OTHERS-meh Site Supporter Platinum Bling

    Joined:
    Apr 4, 2010
    Messages:
    5,872
    Likes Received:
    5,748
    Trophy Points:
    113
    Gender:
    Male
    Technically SJT is San Juan Basin Royalty Trust, NOT a STOCK.
    I see Unit Share pricing increasing through the Winter months, possible increases in Unit Distribution, and especially in a TRUMP led economy improving.

    I'm getting paid every month to wait and see.

    FYI - I do hold this in a ROTH IRA so there are TAX differences compared to those who hold it outside a ROTH.

    GLTA.
    DYODD,
     
  12. southfork

    southfork Mother Lode Found Mother Lode

    Joined:
    Mar 31, 2010
    Messages:
    14,087
    Likes Received:
    12,049
    Trophy Points:
    113

    Looks like it just jumped from 6s, wonder if forward movement can continue
     
  13. EO 11110

    EO 11110 He Hate Me Mother Lode

    Joined:
    Jul 31, 2010
    Messages:
    12,216
    Likes Received:
    8,239
    Trophy Points:
    113
    that sjt - think you are limited on how much you can hold in an ira. that's a shame

    i like the mlp's -- if they are okay now, at this oil price...
     
  14. Professur

    Professur Midas Member Midas Member Site Supporter ++

    Joined:
    Mar 31, 2010
    Messages:
    4,901
    Likes Received:
    4,712
    Trophy Points:
    113
    And I can't find heating coal in Quebec for any money.
     
  15. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    The pic I posted probably isn’t a tenth of the mine. Type NARM into google earth. Then zoom out.
     
  16. ErrosionOfAccord

    ErrosionOfAccord #1 Global Warmer Gold Chaser Site Supporter ++

    Joined:
    Mar 30, 2010
    Messages:
    2,784
    Likes Received:
    2,634
    Trophy Points:
    113
    Occupation:
    Energy Extraction
    Location:
    Coal Country
    Up 30%

    Also bought 3400 shares of cctc on a whim. At .11 per share I’m not horribly concerned the PRB coal is about 27-30% water. Shipping all of that water by rail to power plants is a huge cost and waste issue. If CCTC makes good on this technology they will be a pretty incredible company. Coal drying has been tried here and failed due to explosions and other issues. It’s a buy and hold gamble for me.
     
    Last edited: Dec 22, 2017
    andial likes this.
  17. GOLDBRIX

    GOLDBRIX God,Donald Trump,most in GIM2 I Trust. OTHERS-meh Site Supporter Platinum Bling

    Joined:
    Apr 4, 2010
    Messages:
    5,872
    Likes Received:
    5,748
    Trophy Points:
    113
    Gender:
    Male

    That is news to me.
    There are limits considering what your income is in any Traditional IRA. If you qualify for a Roth (Post-Tax) IRA I do not recall limits.
    I aint no where close if there are. DYODD
     

Share This Page