"You would think the coal industry would be toast," Cramer told viewers, "given that China, where most of the demand was coming from, has put the brakes on its economy and in this country we didn't commission a single new coal plant in 2009."
Yet, the coal company Peabody Energy was very bullish when it reported last Tuesday. Then on Friday Arch Coal said things weren’t so “hot.” So, which is it?
Cramer thought this sounded similar to what he heard two weeks ago when the rails reported, and CSX painted a pretty bleak picture of the coal market, while Union Pacific gave us a much more rosy one. Coal represents about 45% of rail freight, so these companies understand the business. But, it’s not “one size of coal fits all.” There’s coal for utilities, metallurgical coal for making steel, and export and domestic coal.