Wait for it ... Not yet ... Now ... (George Soros Buys Coal)
Jeffrey C. Borneman | August 18, 2015
The title above are the words spoken by Dan Aykroyd in the trading pit scene at the end of Trading Places using his inside information (about the orange-crop report) and gauging the exact time to make his move on the futures market. What does George Soros know about the coal industry that the average investor does not?
"SNL Financial reported on Friday that Soros’ investment fund informed the Securities and Exchange Commission that it purchased stakes in Peabody Energy and Arch Coal this year (reports Free Beacon) - Soros acquired more than 1 million shares of Peabody and 553,200 shares of Arch in the second quarter, according to the filing."
Should investors be surprised at this move by the financier of every "green" organization in America? Perhaps Soros realizes the beatings the EPA has taken over both the new "rules" of The Clean Air Act and Clean Water Act and is merely hedging his bets that congress will reign in future EPA overreach. Or perhaps he realizes the U.S. cannot make up the 37% of electricity from coal with the vaunted "renewable, green and sustainable" alternatives.
Or just maybe Soros couldn't resist buying excellent companies at pennies on the dollar (literally) thinking that surely U.S. coal is exportable if all else fails.
The shares of both companies are considerably lower now than during the Q2 of 2015 but Soros is no fool. He undoubtedly would be adding to his positions to cost-average down. We will discover his intent during the next SEC reporting period.
There are money managers that are now accusing Soros of both theft and collusion with the EPA.
Thomas Lifson wrote today in American Thinker, "These companies own huge reserves of coal that would be worth far more if the jihad against coal ended. If, for instance, the EPA backs away from its latest rules on CO2 emissions."
Does the Soros move signal he knows what is in the crop report? If the EPA is forced to perform a cost-assessment of compliance on future "rules" the writing is on the wall for all to see. The jihad against coal would end ... my guess is that Soros is betting like he knows the "orange harvest was not affected by the unusually cold winter."