Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Dennis Roth who wrote (107116)	8/14/2008 6:23:45 PM
From: tradingfaster123	Read Replies (1) \| Respond to of 206168

Thanks for posting that dennis. so now credit suisse has done their calculations for coal price fuel switching and got $8.41 as the number. To get east coast NG competitive with east coast coal, i think would take $7's on the NYMEX for natural gas. that is assuming credit suisse's calculations are correct. i remember reading $7's from a couple other sources as well. i'm sure there are a lot of factors that go into the whole switching process so we'll see. it seems natural gas will force the issue. considering coal prices are holding strong and were up today and showing no signs of following crude of natural gas, it feels like we will eventually go under and test this floor at some point. and also assuming switching does occur at some point, i dont see how we can get $6 or $5 handles like we did in 2006/2007 even though supply growth is much more now than it was back then. (not to mention the marginal cost of production has increased, as credit suisse cites)