Coal companies risk being kicked off the NYSE because of declining value [View all]
Steep slump in coal stocks, as investors bail, began before CO2 concerns
Benjamin Hulac, E&E reporter
ClimateWire: Thursday, June 11, 2015
Executives and workers at Walter Energy Inc. watched Monday as their company's share price lost 30 percent of its value in a day, closing at 30 cents amid speculation of an impending bankruptcy filing.
It's also one of several companies, including Arch Coal Inc. and Alpha Natural Resources Inc., that are at risk of being booted from the New York Stock Exchange if their stock price doesn't promptly climb above $1. And on Monday, Peabody Energy Corp. said it would let 250 workers go.
Economic struggles like these are not temporary ailments but are ingrained within the U.S. coal sector, said Luke Sussams, a researcher at the Carbon Tracker Initiative (CTI), a nonprofit think tank that studies climate change and its connections to financial risk.
In the last five years, the MSCI World Index, a broad financial barometer for the world's stock markets' performance, has increased 44 percent in value.
During that window, the global coal sector has given away 43 percent of its value. The American coal market value -- viewed through the Dow Jones U.S. Total Market Coal Sector Index -- has been particularly dismal, shrinking by 76 percent since 2010...
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