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How Many Coal Bankruptcies Will Result From Obama’s War on Coal

It’s no secret that coal company stocks are taking a beating from President Obama’s war on coal.

Over the past few years, coal stocks are down more than seventy-five percent and during the same period Patriot Coal and James River Coal Company filed for bankruptcy.

The regulatory climate is going to get worse with news breaking that President Obama is going to announce a new set of EPA regulations that are going to target greenhouse gas emissions from existing power plants.

The Pittsburgh Post-Gazette wrote about the implications of the new rule in Pennsylvania.

On June 2, the U.S. Environmental Protection Agency is expected to release guidelines aimed at cutting carbon emissions from existing power plants. The new rules could have powerful implications in Pennsylvania, one of the country’s top electricity producers and sources for fuels like natural gas and coal.

With coal stocks so low some are thinking it might be a good time to buy. However, an article in Barron’s says stock pickers should consider the likelihood of more bankruptcies.

Pick a coal stock–any coal stock–and it’s likely that those shares have been pounded this year. That’s made some analysts consider whether they’re cheap enough to buy. UBS thinks its time to consider bankruptcy, even if its not a near-term concern.

The devastating consequences from Obama’s war on coal continues to mount and it looks like it’s going to get much worse.

Tom Borelli

Dr. Tom Borelli is a Newsmax TV contributor and radio commentator addressing political issues from a conservative grassroots perspective. As a columnist, he has written for The Washington Times and authored articles for Newsmax Magazine, Newsmax Insider and previously was a co-host with his wife Deneen Borelli on the SiriusXM Patriot channel. Dr. Borelli appeared on numerous television programs, including the highly ranked Fox News Channel’s “The O’Reilly Factor,” “Hannity,” “The Kelly File," and "America’s News Headquarters." He has also appeared on Fox Business Network’s “Making Money with Charles Payne” and “After the Bell” as well as TheBlaze TV’s "The Glenn Beck Program" and "Dana!" Prior to working for public policy organizations, Dr. Borelli was a managing partner with the investment advisory firm of Action Fund Management, LLC and a portfolio manager for the Free Enterprise Action Fund (FEAF) where he used shareholder activism to challenge corporations that sought to profit from the growth of government. During his 25 years with the Altria Group, Inc., he built a foundation in public policy and issues management, drawing from diverse experiences ranging from basic research to corporate affairs. Dr. Borelli served as science fellow for the U.S. House of Representatives' Committee on Science, Space, and Technology during the 100th Congress. Dr. Borelli has also published scientific papers on interferon and human leukemia.

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