Alliance Resource Partners Has to Change Its Business Model Before It's Too Late
Most industries go in and out of favor over time, but along the way some end up completely disappearing. While it's way too soon to suggest that Alliance Resource Partners' (NASDAQ: ARLP) coal operations are worthless, they are increasingly troubled. Here's what's going on, and what the miner is trying to do about it.
The example of cars destroying the buggy whip industry is an easy go-to when explaining the business impact of change and innovation over time. Today, coal is facing similar headwinds from cleaner alternatives, including natural gas, solar, and wind. There are still industries, notably steelmaking, that make heavy use of coal, and will likely continue to do so for a long time. But energy is really the big driver for most coal miners. And coal's place in that sector is shrinking.
Image source: Getty Images.
Source Fool.com