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IBDvalueinvestin (99.67)

Coal stocks down between -30% to -40% Since April 29

Recs

4

June 23, 2011 – Comments (2) | RELATED TICKERS: CLF , WLT , ANR

but that is the good part if your looking to buy Coal during its highest demand period July - August.

Coal is used mainly to produce electricty and July thru August are known for the heaviest demand for AC use.

Then you have all the outdoor barbecues away from home which use  Coal for cooking

 

The 3 most attractive coal stocks today are in order : CLF, WLT, ANR

All three are basically down as if we just entered a second recession, but their forward earnings look even tastier at these levels.

 

CLF forward pe 5.77

WLT forward pe 6.83

ANR forward pe 7.05

2 Comments – Post Your Own

#1) On June 23, 2011 at 8:20 AM, IBDvalueinvestin (99.67) wrote:

China, the world’s fastest growing major economy, has massive coal

reserves, but the country’s energy consumption is growing so rapidly

that in 2010, it began importing more coal than it exports. China

imported nearly 50 million tons of coal in the first half of 2010, up

almost 130 percent from a year ago. China has taken over the U.S. as the

world’s heaviest consumer of coal, and this, combined with an

increased global demand has triggered a change in the world market for

energy. Currently about 70 percent of China’s energy needs are met by

coal.

Except for price inflation generated following the energy crisis of

1973, U.S. coal prices were relatively stable from 1973 through 2007. In

2008, coal prices witnessed a spike when Australia – the world’s

largest overall coal exporter – was hit by floods that forced several

producers to shut their mines, causing a huge decline in output. In

addition, a power crisis in South Africa resulted in the closing of

mines, which further decreased global production. In 2010, floods in

Australia once again caused disruptions which drove up coal prices to

unusually high levels. Most industry experts agree that with the growing

power demands of China and India, the demand and price of coal will

likely keep rising steadily, assuming that radical changes are not made

to adopt alternative sources of energy.

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#2) On June 25, 2011 at 12:58 PM, applegate888 (< 20) wrote:

anr is in the catbirds seat.

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