The coal sector is clearly in a depression, which has been caused by a variety of reasons, mainly the federal government’s warning on all things coal. Since President Obama took office, increasing regulations have hurt coal production and has forced ulitities to cut back on coal and use other sources of energy. Last month President Obama announced his Clean Energy Plan, which resulted in the already depressed coal sector to become even more depressed. In addition, coal has been unable to complete against lower cost energy sources like natural gas, and now oil, which is selling at around $50 a barrel due to OPEC and the shale boom.
All of this has lead the coal sector to fall into a depression with multiple coal companies now selling for less than a $1. After the President announced his clean energy plan which will destroy the coal sector, George Soros revealed in his 13f filing that he purchased shares of two coal companies.
Mr. Soros purchased share of Peabody Energy and Arch Coal, two of the largest publicly traded companies in the United States. During the second quarter Soros purchased over a 1, 000, 000 shares of Peabody for $2.4 million, and purchased 550, 000 share of Arch Coal for $188, 00. Soros acquired his stakes in both companies at bargain prices.