CONSOL Energy, Inc. (NYSE:CNX)

Nice size player in the coal sector. Fossil fuels are not going away anytime soon, and that is not just oil, but the black rock is a major part of the energy sector in the future. Taken some hits over the past few years but should rebound in the near future.

Expecting increases in coal shipments over the next few years.

Diversification and solid management.

Assuming duplication of max high within past 5 years.

I think energy plays, and power generation in specifics will be getting hotter soon. CNX has a good track record with decent returns, I foresee it being in the 50s region within the next 2 years or so with the price of crude and other fuels going up.

Energy play - will grow solidly

CNX will be the big winner in the Marsallues Shale gas play. CNX extensive knowledge of the coal formations and underlying gas resevoirs in this area will ultimately be a big advantage.

This stock will touch its lower resistance level once again - $ 33 with in next few days.

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Correction is pretty much at bottom should be going up from here over time.

Profile

CONSOL Energy Inc.
CNX Center
1000 Consol Energy Drive
Canonsburg, PA 15317-6506
United States - Map
Phone: 724-485-4000
Fax: 724-485-4833
Website: www.consolenergy.com

Details
Index Membership: S&P 500
S&P 1500 Super Comp
Sector: Basic Materials
Industry: Industrial Metals & Minerals
Full Time Employees: 8,012

Business Summary
CONSOL Energy Inc. engages in the production of multi-fuel energy and provision of energy services primarily to the electric power generation industry in the United States. The company involves in the mining, preparation, and marketing of steam coal primarily to power generators; and metallurgical coal to steel and coke producers. It also produces pipeline-quality coalbed methane gas from its coal properties in the Northern and the Central Appalachian basin; and oil and gas from properties in the Appalachian and Illinois Basins. The company sells its methane gas primarily to gas wholesalers. As of December 31, 2009, it had proved and probable reserves of approximately 3,960 million tons of steam coal. The company was founded in 1991 and is based in Canonsburg, Pennsylvania.

***All above information from YAHOO FINANCE***

Coal market has been depressed by Massey.
Purchasing Dominion gas reserves is strong play for future profits.

bearish over the short term due to:

~coal stocks usually trade at 8-11 times p/e, current levels r untenable
~demand for clean energy,coal is the dirtiest energy, demand for coal comes only when all other energy sources r maxed out
~bye-bye harsh winter
~china cooling down its economy/raising interest rates
~economy getting ahead of itself
~oil inventories r still high

coal is dirty energy~
end of winter~
over-recovery of economy
china to increase interest rates/cool down economy

Goldman is big-time bullish on the coal industry, and Consol has just given back about 20% of its recent gains. Time to buy on the dip. If Consol meets estimates for the next couple quarters, fair market value may place the stock in the $45.00 range.

Oversold with the rest of the sector, CONSOL will recover as the price of coal recovers in 2009. Another good point is that unlike that other Appalachian giant, Massey, CONSOL does most of its mining underground, and so will avoid the affects of the jihad against mountaintop mining.

Inevitable- as the world turns this is the track forward

Just love it from here there is only one way to go UP, UP, and UP!

Forward PE is around 3 and growth is projected to be through the roof. With the price down 80% from not too distant highs, this is a great value.