Bought Half Position – NRP

An old play, NRP, is back in my books today for $19.71. I added this at 5% of assets, keeping it small.

The play is on coal prices. Natural gas prices have increased and are no longer rock bottom. And, life in America has not changed that much. Obama and his EPA army of extremists notwithstanding, coal consumption is set to increase in America this year. And attempts to mess with that will cost everyone dearly.

I’m not going with a full position because I understand how much this administration hates coal. But, I don’t really think there’s anything they can do about it.

NRP is an LMLP and pays out a very large dividend while I wait. They’ve had problems, naturally, from competition with natural gas. However, they’ve been moving steadily to diversify their royalty revenues, and I think coal will surprise to the upside, as it becomes clear the industry is still essential to American interests.