Tag Archives: btu

Blame Management and Human Sacrifice



http://hussmanfunds.com/wmc/wmc150615.htm   Never in market history has the MEDIAN stock been so highly priced relative to valuation metrics.












Buy the Accused, Sell the Acclaimed

Going back to behavioral finance and what causes cheapness: Blaming Management and Human Sacrifice

Buying Distress and Falling Knives or the “No Hope” Portfolio.

Symbol Company Price Shares Amount Comm. Total Date
CLD Cloud Peak Energy 4.66 1071  $ 4,991 8  $ 4,999 6/14/2015
BTU Peabody Energy 2.47 2020  $ 4,989 8  $   4,997 6/14/2015
CNX Consol Energy 25.51 196  $5,000 8  $   5,008 6/14/2015
Completed 1:14 EST  $15,004.00 6/14/2015

I am buying a basket of coal miners today with different characteristics. CNX is not a pure coal company. Peabody is more of a stub stock since its market cap is about 1/10th its debt–scary!  I will add on a further 25% decline.  Holding period: five years.  I recommend that anyone reading this NOT follow me. Do your own thinking or mis-thinking as the case may be.

We also don’t want to confuse low nominal prices or declining prices with “cheapness.” There are plenty of junior resource stocks trading for pennies that are worth $0.  Microcap_stock_fraud

Lot’s of hope:http://www.fool.com/investing/general/2011/06/20/the-hottest-sector-you-still-refuse-to-watch.aspx.

Better when there is no hope:btu