Jim Chanos Short Coal on Natural Gas Revolution
On CNBC, hedge fund manager and noted short seller Jim Chanos stated that he was short coal. His investment thesis was that, with the natural gas revolution taking place in the US, Coal was the "oddman out."
Chanos stated that the natural gas revolution was a game changer for the US and for US manufacturing in a very positive way. Still, as a short seller, he looks for negative opportunities, and in this case that would be in the coal names.
Chanos stated that the ability of power plants to switch to gas is increasing by the day.
He saw issue with going long many natural gas companies themselves, as they were put together and capitalized with the assumption of higher natural gas prices, in the $6-7 range.
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