Why the Reiteration?
Pinnacle West posted inspiring earnings results in the first quarter of 2013, widely surpassing our expectation. The company outperformed on the back of positive non-fuel rate changes and favorable retail sales.
Nevertheless, our reiteration takes into consideration the impact of the Obama climate plan which calls for reduction in coal-fired operations in the future. This will inevitably take a toll on Pinnacle West�� coal-generation business, which forms a major part of its operational mix.
Also, the lingering weak economic fundamentals in the U.S. will continue to prevent electric prices from gaining momentum thereby deterring Pinnacle West�� opportunities.
Yet, the company�� gradual shift to renewable energy sources will bode well for its future broad growth objectives. Pinnacle West has a series of solar investments in the pipeline in Arizona which will elevate its clean energy generation share to 15% by 2025. This will be further supported by consistent customer additions expected in the next 3 years.
Top 5 New Companies To Buy For 2015: Peabody Energy Corporation(BTU)
Peabody Energy Corporation engages in the mining of coal. It mines, prepares, and sells thermal coal to electric utilities and metallurgical coal to industrial customers. The company owns interests in 30 coal mining operations located in the United States and Australia, as well as owns joint venture interest in a Venezuela mine. It is also involved in marketing, brokering, and trading coal. In addition, the company develops a mine-mouth coal-fueled generating plant; and Btu Conversion projects that are designed to convert coal to natural gas or transportation fuels; and clean coal technologies. As of December 31, 2011, it had 9 billion tons of proven and probable coal reserves. The company was founded in 1883 and is headquartered in St. Louis, Missouri.
Advisors' Opinion:- [By Taylor Muckerman and Joel South]
At first I thought my eyes deceived me, but after reading deeper, Peabody Energy (NYSE: BTU ) actually turned a profit this quarter. Thanks to a few one-time items, the company unearthed $0.33 per share in earnings this past quarter versus the expected loss of $0.05 per share analysts had buried the company under. Not to be outdone, Freeport-McMoRan Copper & Gold (NYSE: FCX ) beat earnings predictions as well.
- [By Claudia Assis]
Top gainers among energy companies with the S&P 500 index were coal producer Peabody Energy Corp. (BTU) , with shares up 3.1%, and WPX Energy Inc. (WPX) , which rose 2.7%.
- [By Aimee Duffy]
The great majority of this country's coal production comes from Wyoming's Powder River Basin. The two leading producers there, Peabody Energy (NYSE: BTU ) and Arch Coal (NYSE: ACI ) , account for more than half the production in the entire basin, producing 139 million tons and 100 million tons, respectively, in 2012. But as coal demand in this country shrinks, Peabody and Arch have pinned their hopes on exports. Unfortunately, what these companies are finding is that exporting coal from ports on the Pacific coast is an increasingly contentious business.
- [By Ben Levisohn]
Gains in coal stocks like Peabody Energy (BTU) and Alpha Natural Resources (ANR) have gone up in smoke during the past month thanks to new rules from the EPA that would limit its use as a fuel for power generation.
APShares of Cloud Peak Energy (CLD) have fallen 3.3%, for instance, while Peabody Energy has dropped 12%, Alpha Natural Resources has plunged and Arch Coal (ACI) has plummeted. Consol Energy (CNX), which is as much a gas company as a coal miner, has gained.
Don’t count coal out yet, say Stifel’s Paul Forward and Vincent Anderson. They explain why:
The CO2 policy proposal represents the continuation of a long struggle for U.S. power market share between natural gas (+ renewables) and coal, a conflict that has intensified during a period of flat U.S. power demand from 2005 to 2013. During that time, coal�� power market share fell from 49.6% to 39.1%, while the natural gas share rose from 18.8% to 27.4%. Much of the investment case for U.S. coal, in our view, centers on its ability to step in as a low-cost, reliable ��lan B��if ��lan A��(gas+renewables) falls short. The cold weather-impacted 1Q14 offered a glimpse of what this might look like, in our view…
We favor exposure to U.S. coal mining firms in low-cost regions including the Illinois Basin, Powder River Basin, and Northern Appalachia. These include Buy-rated Peabody Energy, Cloud Peak Energy and CONSOL Energy.
Shares of Peabody Energy have risen 2.3% to $16.63 at 2:06 p.m., while Cloud Peak Energy has advanced 2.1% to $18.98, Consol Energy has gained 1.6% to $46.49, Alpha Natural Resources has jumped 5.1% to $3.38 and Arch Coal is up 2.7% at $3.39.
Top 5 Solar Stocks To Own Right Now: JinkoSolar Holding Company Limited(JKS)
JinkoSolar Holding Co., Ltd., together with its subsidiaries, engages in the manufacture and sale of solar power products in China and internationally. The company provides solar modules, silicon wafers and ingots, and solar cells, as well as processing services, including silicon wafer tolling services. It sells its products under the JinkoSolar brand name. The company?s customers include distributors, project developers, and system integrators. It trades its products under short-term contracts and by spot market sales. The company also produces accessory materials for solar power products, such as solar aluminum frame, solar junction box, aluminum materials windows, and other metal component parts. JinkoSolar Holding Co., Ltd. was founded in 2006 and is based in Shangrao, the People?s Republic of China.
Advisors' Opinion:- [By Paul Ausick]
But the real news is the near vertical trajectory in share prices for the two stocks. This could be another manifestation of the market�� hunger for some momentum plays, as we noted earlier this morning the bump to share prices for both JinkoSolar Holding Co. Ltd. (NYSE: JKS) and Shutterstock Inc. (NASDAQ: SSTK), both of which held secondary share sales this morning.
- [By Zacks]
On Dec 17, Zacks Investment Research upgraded JinkoSolar Holding Co., Ltd. (NYSE: JKS) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Top 5 Solar Stocks To Own Right Now: Renesola Ltd.(SOL)
ReneSola Ltd, together with its subsidiaries, engages in the manufacture and sale of solar wafers and solar power products. It offers virgin polysilicons, monocrystalline and multicrystalline solar wafers, and photovoltaic cells and modules. The company also provides cell and module processing services. Its products are used in a range of residential, commercial, industrial, and other solar power generation systems. The company sells its solar wafers primarily to solar cell and module manufacturers. It principally operates in Mainland China, Singapore, Taiwan, Hong Kong, Korea, India, Australia, Germany, Italy, Spain, Belgium, France, the Czech Republic, and the United States. The company was founded in 2003 and is based in Jiashan, the People?s Republic of China.
Advisors' Opinion:- [By Paul Ausick]
Stocks on the move: Nokia Corp. (NYSE: NOK) is up 31.5% at $5.13 on the announcement that Microsoft Corp. (NASDAQ: MSFT) will acquire the Finnish firm�� mobile phone business for $7.2 billion. Chinese solar energy stocks are getting a boost again today, with Hanwha SolarOne Co. (NASDAQ: HSOL) up more than 15.9% and ReneSola Ltd. (NYSE: SOL) up 14.9%.
Top 5 Solar Stocks To Own Right Now: JA Solar Holdings Co. Ltd.(JASO)
JA Solar Holdings Co., Ltd., through its subsidiaries, engages in the design, development, manufacture, and sale of photovoltaic solar cells and solar products, which convert sunlight into electricity in the People's Republic of China. The company?s principal products include monocrystalline and multicrystalline solar cells, as well as various solar modules. It also provides silicon wafer and solar cell processing services. The company sells its products primarily under the JA Solar brand name, as well as produces equipment for original equipment manufacturing customers under their brand names. It sells its solar cell and module products primarily to module manufacturers, system integrators, project developers, and distributors in the Germany, Italy, the United States, Hong Kong, Spain, India, the Czech Republic, France, and South Korea. The company has strategic partnerships with various solar power companies, such as BP Solar, Solar-Fabrik, and MEMC/SunEdison. JA Solar Holdings Co., Ltd. was founded in 2005 and is based in Shanghai, the People?s Republic of China.
Advisors' Opinion:- [By Gary Bourgeault]
Other companies of note that will be hurt will be LDK Solar (LDK), Suntech Power (STP), JA Solar Holdings Co., Ltd. (JASO) and Renesola (SOL) among others. Some these are already hanging on by a thread because of taking on too much debt and defaulting on bonds.
- [By Laura Brodbeck]
Notable earnings releases expected on Monday include:
LAN Chile S.A. (NYSE: LFL) is expected to report fourth quarter EPS of $0.24 on revenue of $3.50 billion, compared to last year�� EPS of $0.02 on revenue of $3.48 billion. JA Solar Holdings, Co. Ltd (NASDAQ: JASO) is expected to report EPS of $0.03 on revenue of $291.75 million, compared to last year�� loss of $2.65 per share on revenue of $268.09 million. Sterling Construction Company, Inc�(NASDAQ: STRL) is expected to report a fourth quarter loss of $1.47 per share on revenue of $153.07 million, compared to last year�� EPS of $0.18 on revenue of $158.09 million.Economics
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