Massey Energy Company (MEE)

Valuation.

DEMAND FROM CHINA FOR ENERGY

ow relative PE, good chart, star ratings & 2010 earnings. Bottom fishing week of 10/26.

Coal ash will soon be declared a toxic substance and regulated by the EPA at a HUGE cost to the coal industry. Coal is a DIRTY and polluting product whose environmental costs have been hugely underestimated. Once the overall long term costs to society are factored into the equation, the cost of burning coal will skyrocket. Coal will NO longer be seen as cheap compared to natural gas and will be downright expensive compared to renewable sources such as wind, solar, and water power.

This account tracks the performance of newly minted 4 star stocks - 3 star stocks that recently turned in to 4 star stocks.

With demand for oil going up, and most likely supply for oil dropping (PRICE INCREASE IN OIL), the alternative will be coal. These guys do coal best, and do it as clean as possible.

Evil elements:
-Mountaintop removal mining
-Toxic coal slurry dumping into waterways
-Coal burning creates 2x greenhouse gases of other fossil fuels, maximizes other pollutants, and puts mercury into fish!
-Evil CEO who compares energy efficiency to communism, and is "involved" in politics:

"On April 3, 2008, ABC News reported that CEO Blankenship attacked an ABC News cameraman at a Massey facility near Belfry, Kentucky as the camerman attempted to question Blankenship about photos published in the New York Times showing Blankenship on vacation in Monaco with West Virginia Supreme Court Justice Elliott "Spike" Maynard while Massey had a case pending before the Court. "If you're going to start taking pictures of me, you're liable to get shot," Blankenship stated in the video."

I generally like Massey at this price, but it's a scary place to have your money. They seem to be perpetually in the litigators' and regulators' crosshairs.

The 4th Circuit recently overturned an injunction against permits for mountain top mining, which Massey is heavily exposed to, so that's good news. There's a big push among the enviros to end mountaintop mining, and if they were to succeed, Massey would be in big trouble.

This stock could give you big returns, but a safer Appalachian coal play would probably be Consol (CNX), who are more into underground mining.

Alternative energy and clean energy are the future.

Solid last quarter earnings, especially given the recession.

give me a break! A coal company with a P/E of 35. How do people think that will play out. Are they making e-coal or something?

They just gained a bunch because they were upgraded by GS. But a class action lawsuit just got approved against them.

Added to further diversify portfolio. Sector pick. Buy and hold long term. Industry will rebound with the economy.

The world needs energy, it's the single most significant factor for industrial growth. I normally don't like coal companies, because they are so polluting, but I like that this company produces low sulfur coal, which is less polluting. Also tied to steel industry so this is a good infrastructure & oil tanker pick. Oil, Gas & Coal have been pummeled by our depression and low prices of late, but don't expect this situation to last for long. Because worldwide demand will continue to grow and prices will soar just as soon as the economy gets rolling again, so I'm taking advantage of this lull to buy & hold stocks like this winner.

I know investors have placed the coal names in the dungeon for now because they think the Obama administration wants to stop using coal altogether. This is ludicrous. We get half of our electricity from coal. If Obama's stated goal of doubling our energy from wind and solar is realized, electricity from those sources would go from the current 1% to 2%. So coal would then acount for 49% of our electricity. At the same time China's appitite for coal will be insatiable. It built a new coal-fired generator on the average of one every 10 days in 2008. There are hundreds of millions of people trying to join the middle class in China, India, Africa, and elsewhere. The number one demand of that group is for electricity and most of that electricity will be generated by coal. Massey increased its profits for 2008 by over 100% from 2007. And 4th quarter 2008 profits were up over 100% compared to Q4 2007. That was in the middle of the most severe recession of our time. Massey is a $50-$60 stock that you can buy now for about $12.

If earnings predictions are any where near correct, this stock will climb to over $25.

Continued and necessary reliance on coal means this stock is undervalued.

Strong financials, strong demand for product for foreseeable future

Completely Undervalued