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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: walterenergy who wrote (37079)	3/26/2010 11:18:28 AM
From: E_K_S	Read Replies (1) \| Respond to of 78673

Hi walterenergy - The problem for me w/ Patriot Coal Corporation (PCX) is that they are a coal only producer. I wanted the NG diversification you get w/ CNX. According to Yahoo, CNX has a lower forward PE below 10 and does pay a very modest dividend. Patriot Coal Corporation (PCX) does seem to be selling at a better Price to Book level at 2x book compared to CNX with a 4x BV. My goal is to have more exposure to coal specifically metallurgical (thermal) coal. My largest position in the portfolio is BHP Billiton Ltd. (BHP) which provides me some exposure to coal but I thought that CNX could be a good addition if one could buy it on the cheap. I wonder since PCX is located in (or near) the Illinois basin where there are substantial deposits of shale NG reserves (see #24 on chart energyindustryphotos.com ), if they own any mineral rights to these NG reserves. If so, it might be a hidden asset in their balance sheet that someday they could sell or develop w/ a JV partner. Do you know if PCX owns any mineral rights to potential shale NG reserves for property they own in the Illinois Basin region? I suspect that if they do, they have already sold the NG rights to free up capital. EKS