Goldman’s Coal Stock Analysis, Chesapeake’s 10-Q Comment: Energy Business Wrap

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The re-election of the President has plunged coal stocks, but Goldman is urging investors to refrain from buying the dip, because it thinks that already the projected 11 percent increase in demand for thermal coal in 2013, along with the expected met coal price recovery to $200 per metric tons by the fourth quarter of next year, are priced in. Relative sector winners, as seen by Goldman, are CONSOL Energy (NYSE:CNX) and SunCoke Energy (NYSE:SXC), while Sell-rated Arch Coal (NYSE:ACI) and Walter Energy (NYSE:WLT) are viewed as losers.

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A remark from Chesapeake Energy Corporation’s (NYSE:CHK) just-filed 10-Q reads “We project that our capital expenditures will continue to exceed our operating cash flow through 2013… we may not reach our previously announced goal of $9.5 billion by year-end 2012 until 2013.”

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