Peabody Energy Corporation (OTCMKTS: BTUUQ) Review + Outlook


Traders News Source Mission Statement

We strive to highlight the future potential as well as the inherent risk in each small cap company we cover while remaining neutral as a leading third-party equity research and corporate access firm.


Peabody Energy Corporation (OTCMKTS: BTUUQ), is the world’s largest private sector coal miner, but in April 2016, it filed for Chapter 11 bankruptcy protection following months of rumors and speculation. The company serves metallurgical and thermal coal customers in 25 countries on six continents.

It recently announced closing of its previously announced private offering of $1.0 billion aggregate principal amount of senior secured notes.  Proceeds of the offering have been funded into an escrow account pending Peabody’s emergence from bankruptcy. It will be released from escrow to fund a portion of the distributions to creditors provided for under the plan of reorganization, and Peabody will become the obligor under the notes.

***Get our small cap profiles, special situation and watch alerts in real time. We are now offering our VIP – SMS/text alert service for free, simply text the word “Traders” to the phone number “25827” from your cell phone***

After courts approval for reorganization, the odds for recovery for shareholders got minimized significantly.   Furthermore, the management confirmed a deal with debtors to give management substantial rewards and up to 10% equity in a new vehicle while the owners of the company, who bear no responsibility for management wrong doings, end up with nothing.


Under original reorganization plan, shareholders and convertible bond holders are scheduled to get nothing. While, unsecured note holders get new equity and rights. Second lien holders expected to get combination of cash, new debt, equity, and rights.


While share holders are seeking to be part of a reorganized company. But even with appointment of an equity holders’ committee, it’s unlikely that the bankruptcy will leave anything for existing shareholders. Peabody creditors have already agreed to support the plan that cancels the stock.

Also, considering reorganization will be a long-drawn affair, it is less likely to provide any relief to share holders over near term.


Industry/Operational update:


From an industry perspective, notwithstanding a short-term surge in coal prices, nothing has fundamentally changed in prospects of the coal industry. In fact, there has been significant negative news recently. There are also too many companies sitting with sizeable inventory chasing a dull market – This makes the situation even worse for the company.


Recent developments in coal industry, both in the US and international market suggests that the structural decline in the industry continues to impinge the business risk profile of the company. Also, so far increasing or even preserving the value for share holders is concerned, previous track record of management is not very encouraging. Therefore, prospects for shareholders is not very optimistic over the near to medium term.

Moreover, from a business perspective, management made it clear that recent recovery in the seaborne coal industry has seen sharp price recovery due to restrictive production policies in China that led to increased imports. It notes that these improved conditions are unlikely to be sustained.


In a court document filed on 25 January 2017, Peabody Energy projects coal demand for electricity in the US to decline by 15-25 million tons from 2016 to 2021. On the flip side, in its  own business plan, approved on 10 August, 2016, it projected coal demand in the US to “grow a total of 20-25 million tons between 2016 and 2021”. Therefore, Company’s projections/assumptions are highly sensitive to change in its own assumptions.



Recent developments:

Mangrove Partners, who  use to own 5.2% of the stock, sold almost all of its holding last month.


Convertible bond holders could get a modest recovery under an amended disclosure statement. Reorganization plan is expected to be confirmed March 16.


The company did not go for valuations  citing expense and delay as part of the reason. Management and the debtors just finalized a figure that they agreed to. There was no input from the shareholders of the company. Therefore, shareholders should not pin their hopes with the management.


Opponents of Peabody Energy’s reorganization plan filed an appeal  against the proposal which they say violates U.S. bankruptcy law by prematurely requiring creditors to approve the plan.


The plan was approved by the bankruptcy judge on Jan. 26, but an ad hoc committee of dissenting creditors filed an appeal on Friday, claiming BTU “improperly” forced creditors to vote in favor of the plan before it received court approval.


Australian Competition And Consumer Commission issued statement of issues in relation to transaction between Peabody Australia and South32 Aluminum.


Peabody Energy Corp – co does not expect ultimate outcome of transaction to impact expected timing of company’s emergence from bankruptcy.


Earnings review:


  1. Peabody Energy Corp sees 2016 total revenue $4.71 billion to $4.72 billion. Total 187 million tons sold in 2016.
  2. Peabody Energy says on January 27, 2017, bankruptcy court issued an order approving exit facility commitment letter, dated as of January 11, 2017.
  3. Peabody Energy Corp sees 2016 adjusted EBITDA $482 million.


Stock Performance



On Friday, February 24, 17, Peabody shares remained unchanged at $2.75 on an average volume of 1.13M shares exchanging hands. Market capitalization is $50.88 million. The current RSI is 30.2

In the past 52 weeks, shares of Peabody have traded as low as $0.55 and as high as $18.75

At $2.5, shares of Peabody are trading well below its 50-day moving average (MA) at $4.23 and 200-day MA at $8.00.

The present support and resistance levels for the stock are at $2.68 & $3.01 respectively.


About Traders News Source:

Big Opportunities in Small Cap’s


Traders News Source recent profiles and track record, 534% in verifiable potential gains for our members on 3 small cap alerts alone!


January 31st, 2017 (NASDAQ: HIMX) opened at $5.10/share and hit a high of $9.68/share March 24th, 2017 for gains of 89% within 60 days-


February 6th, 2017- (NASDAQ: SCON) opened at $1.12/share hit a high of $1.80/share within 10 days our members potential gains- 60% –


March 6th, 2017 (OTC: USRM) opened at .035/share and hit over .17/share within 25 days for gains of 385% for our members-


These are numbers that make traders drool. Any trader in any market would fall all over themselves to see numbers like this. So, if you’ve been on the fence, perhaps it’s time to start doing some research and verify our numbers for yourself. We are constantly raising the bar and separate ourselves from the rest of the small-cap newsletters as the best in business.


We know with a large following comes a large responsibility as we have everyone from institutional investors to the beginner following our profiled securities in our newsletters. This is something we take very seriously always seeking small cap growth companies that have both near and long-term potential for our members.







Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Vikas Agrawal, CFA. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.


This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.


We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.


When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.


17B Disclosure

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.


PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.


Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled, or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.


TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.


The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.


Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.