Kingcoal's redemption : ESG backfire and China Australia trade war

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 In terms of energy, if anything I will call this age as CoalAge. 

Just an year ago, oil considered obsolete sticky, goey dinosaur juice which no one wants to consume or produce. Oil went negative for an hour, rates plummeted and producers were starved off the capital.

It was perfect la la land for left activists, electric vehicles, renewable like solar and wind and a happy green world.

Now coal and oil are having their days, with oil above 75$ per barrel and coal at 11year time highs. Soaring commodity prices made renewables unviable. 

Like it or not, we are in coal age. 

What are the catalyst I see in this sector to make it a decently performing sector in near future? 

First and most important, China Australia trade war and unofficial ban on Australian coal sent coal prices in North America and Asia soaring high.

Secondly, earlier long term trend of ESG has led to capital starvation of coal producers, thus decreasing supply.

Thirdly, the weather. More heat wave in Northern hemisphere calls for more electricity. Cheapest and fastest source of electricity is coal fired power plants.

Rising Natgas prices, yeah its another catalyst causing utility companies to switch from gas to coal.

Steel demand is in it cyclical growth phase due to huge infrastructure spending by all the governments alike, sent met coal demand soaring.

HOW TO TRADE THIS 

North American listed coal miners, with thermal and metallurgical coal production base in USA 🇺🇸 or Canada 🇨🇦 will benefit.

Here's snap of my watch list 👇



















Remember these are all NYSE listed names. How to invest in global markets read here.


Akhil Garg 

CIO, Garg Capital Management 

akhilgargdps@gmail.com 

Twitter @gargcapital


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