Get some black lung.
Set aside the fact that the EPA is hell bent on bankrupting the sovereign state of W Virginia and consider the following.
The bear case for coal has been the destruction of natural gas prices. Well, since I believe natty has bottomed, it’s fair to assume, as a result, so has coal. They’re intertwined, see?
The last I checked, US utilities were comprised of 58% coal powered plants. That number is down over the past 5 years because natural gas has been a cheaper alternative. With the price spiking here, there is a trade to be had in the natural gas and coal space.
For now, my top picks are in coal, due to the beaten down nature of the sector. It’s so hated right now, more than a Tea Partier hates US debt being owned by persons from the orient.
Top picks are ANR, ACI, BTU and JRCC as a high spec play. Although, according to their debt, JRCC is going to zero.
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It’s more expensive to get coal out of Virginia then some easier parts of WV. Even still most coal headed overseas is the western region. While coal prices may increase that would be a necessity for JRCC to make it. imo.
Grandpa Buffet must be asleep at the wheel of his land-yacht because USG has been and continues to be garbage.
Did you ever purchase SNE based on your aggro-samurai theory earlier in the year? If so, you are either a genius or you sold your soul to Jim Cramer.
i bought it at 10, but sold it
I see you’ve reconsidered coal. Welcome back to the mine.
Thanks
I have Persian rugs in my mine
Get me some $OKS for natty gas exposure, 52.60
I like the idea as a very long-term play……..something you definitely scale into, but as a trading vehicle I’ll stick w/ the nat gas stocks.
This has been a meme for a while. Coal could base for a long time to come. There is the risk that we test the upper bounds of some of these ranges in these stocks, but a breakout is unlikely w/out further basing IMO.
Coal is early.
Thank you for the BV pick.
i am taking my 5% gain and running. don’t care to hold or wait till further upside.
cheers
BAS – the Natty revolution is upon us
No coal for me, I am shorting commodities
i don’t know about coal. other than as daytrades off resistence like today. i’m sticking w the nat gas deriv plays. cqp on any large dip. fcg every time it drops to 16. i dimed into cat today. also, my favorite small cap reit, olp, gaining traction b4 its 3/21 exdiv. homerun on earnings and guidance, as always.
Many of the utilities that burn coal have added natty but keep their coal burners working or on stand by, they are well aware that natty can spike. These are the modern burners with scrubbers. Coal will have its day, technology can make diesel or gas from it.
spoken like a true coal man
Coal to diesel is ancient tech… anything new in that space?
If the thesis here is natgas bottoming and thus coal has legs for utility electric, you dont want to have the exposure to met coal of ANR, or the foreign coal of BTU. Frankly I think the best positioned name for a gas-inspired rally is CLD – good old fashioned US prb coal.