He reveals a recent EPA victory that spells bad news for coal companies, so he advises staying away from Arch [ACI] and Peabody [BTU], for example.

Because Obama supports a carbon cap-and-trade system to curb greenhouse gases, U.S. utilities could move away from coal to alternatives like natural gas. Given the weak economy, the plan may be put on hold for a while, but eventually it could hurt coal producers like Peabody Energy (BTU) and Massey Energy (MEE).

The St. Louis-based coal
company announced that its board doubled the size of its existing
buyback plan to $1 billion. The buyback program, which began in 2005,
does not have an expiration date and the company may repurchase shares
from time to time depending on market conditions. As of Sept. 30,
2008, Peabody had 270.7 million shares outstanding.

"This expanded repurchase program reflects our ongoing commitment to
deliver shareholder value," said Peabody Chairman and CEO Gregory H.
Boyce. "We have a backdrop of record earnings, strong cash flows and
ample liquidity. The fundamentals of the business are sound, and we
maintain strong capacity to continue to grow the company."

The world's largest private-sector coal company recently reported
outstanding third-quarter results. Income from operations reached a
record high of $337.1 million or $1.38 a share, well above last year's
level of $55 million, or 20 cents a share and analysts target of 87
cents a share. Total revenue also reached a record high at $1.91
billion on 66 million tons of coal. Operating cash flows reached a new
high of $462.0 million, and the company repaid more than $100 million
in debt.

The stock surged 18% after the earnings news.

"Peabody had an outstanding quarter, delivering record results that
reflect the benefits of our recent investments and expanding global
platform," said Boyce. "We continue to differentiate ourselves with a
very strong financial and operating performance, rising cash flows,
major contract backlog and rapidly growing international contributions.
In the face of current economic conditions, we are pleased to be
raising our outlook."

On top of the outstanding third-quarter results, Standard & Poor's
upgraded Peabody's corporate credit rating to 'BB+' because of the
company's strong financial performance and positive outlook.

Cramer: Coal Is Over: Barack Obama's election means the end of coal, says Jim Cramer.
Click here to watch the video.

Norfolk Southern(NSC) and other rail companies are "locked in a lot of deals, but remember, you're shipping coal -- Peabody(BTU) says coal's hanging in, but I don't think that could happen -- you're shipping fertilizer, obviously lumber's not going anywhere, oil's not going anywhere," Cramer said. "I mean, what are you shipping that's going to hold up next year?"

Worth says, "I am all in on the long side." He told viewers to look for the most beaten-down names or the most defensive names that have held up in the bear market. Some beaten down names he likes are Chesapeake Energy(CHK), Peabody Energy (BTU), AK Steel(AKS), U.S. Steel(X) and CONSOL Energy (CNX).

PE of 27, a PEG of 0.48, and it pays a yield of 0.6%.

pricing

Bramwell also likes IBM (IBM) and its exposure to fast-growing overseas economies, and Kansas City Southern (KSU) railroad as a play on growing international trade. Peabody Energy (BTU) should benefit from growing demand for coal, she says.

Coal's been carried up with petroleum, and if you think that no value's been created here and oil is going much lower, then these are fantastic shorts: Peabody (BTU) down to $20 and Arch Coal (ACI) to $22. Their declines from the highs are severe, but the next leg would be even worse.

Poor, poor performance. The company should be making hand over fist and has, yet the stock reacts negatively to good news. It is misaligned with the rest of the sector and does not represent the company's growth at all.

alternative energy

Alternative energy play

bad advice

Too unpredictable

good company, bad PR on the coal industry keeping demand low for disappointing stock performance. Still holding on long

good company..
coal is not a demoractic
congress favorite item
sold