Peabody Energy's Stock Takes Another Nosedive
Peabody Energy (NYSE: BTU) is trading today as low as $3.71 per share, after holding just below the $5 mark for the last month.
Peabody's cost per share has dropped from $4.40 to $3.71 in less than 5 days.
Many analysts are pointing to China as the reason for the drop in coal company share prices, including Peabody's. Case in point is a Bloomberg Business article yesterday quoting Wood Mackenzie analyst Li Rong:
“Coal-fired power demand is being displaced by renewables including hydro and nuclear. Demand from non-power sectors is also weak, especially as combating pollution pressures industries like steel and cement. These will keep coal prices sluggish.”
Since mid-2011 Peabody Energy's stock has plummeted from a high of $72 per share to today trading at less than $4.