Nike is the world’s number one athletic footwear brand. It clocked $16.2 billion in global footwear sales. Its footwear is manufactured abroad.
Including Vietnam in the TPP important for firms in the footwear and apparel industries. About 11.6% of the total US apparel imports are sourced from Vietnam.
The NRF estimates that the tariffs from the countries included in the proposed TPP and TTIP were ~$6 billion in 2013 on consumer products alone.
The benefits of the TPP and TPA are particularly relevant for firms in the consumer and retail sectors. The NFR supports the TPA and TPP trade deals.
The Trans-Pacific Partnership is a proposed free trade agreement between the US and 11 other countries. It has been on the anvil since 2009.
Peabody Energy has better product mix, lower-cost mines, and most importantly, higher liquidity than others in the sector.
Cloud Peak Energy (CLD) is the safest American coal producer. The company doesn’t have much debt on its balance sheet, and its available liquidity is sufficient to take care of what debt it has.
Met coal prices have fallen to multi-year lows. What’s more, American coal producers are battling issues like geographic disadvantage and a stronger dollar.
Being a pure-play Powder River Basin coal producer gives Cloud Peak Energy a distinct advantage. The Powder River Basin is the lowest-cost coal producing region in the US.
Arch Coal had a cash balance of $690 million as of March 31, 2015. The company holds another $249 million in liquid securities.
As of March 31, 2015, Alpha Natural Resources had total liquidity of $1.9 billion, including $821 million in available credit lines.
Walter Energy burned $12.7 million on operations and spent another $17.2 million on capex in 1Q15, for a total free cash burn of $30.2 million.
Most major American coal producers are highly leveraged, primarily due to ill-timed expensive acquisitions made in 2011, when the coal market was booming.
Patriot Coal is the second-largest coal producer east of the Mississippi. The company mines metallurgical as well as thermal coal from its eight mines in the Appalachian region.
Cloud Peak Energy is clearly one of the strongest coal stocks available today. If the industry recovers, the company will definitely benefit in a big way.
Peabody Energy (BTU) was downgraded to B2 with a negative outlook by Moody’s (MCO) in February 2015. Fitch downgraded it to B from BB- in March 2015.
Moody’s downgraded Arch Coal from Caa1 to Caa3 with a negative outlook on May 4, 2015. Standard & Poor’s rated the company as B with a negative outlook.
Moody’s downgraded Alpha Natural Resources’ corporate family rating to Caa3 in April 2015, as Alpha Natural Resources’ weak financial position persisted.
Standard & Poor’s downgraded Walter Energy (WLT) to D on April 17 from CCC+. Moody’s downgraded Walter Energy to Ca from Caa2 on May 4, 2015.
Keep a close eye on further developments in the unfolding Greek debt drama and hope that it does not turn into a tragedy.