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Can Coal Power Your 2010 Portfolio?Barron’s is still bullish on coal. According to the newspaper, Consol Energy (CNX) still has room to run. Analysts’ 2010 price targets put a 10% premium on the stock, and, citing valuation metrics, Barron’s noted the company’s favorable EV/EBITDA multiple in comparison to competitors Peabody (BTU) and Arch Coal (ACI). The reiterated recommendation is helping Consol shares by 2.3% today. As a whole, the Coal Stocks Index is trading higher by 1.6% to start the week, pushing it ahead of the S&P 500 by 1% over the last month. Over the last week, the Index is a top-20 performer among tickerspy’s more than 250 sector-based stock Indexes. Basu Mullick, a fund manager at former Lehman Brothers subsidiary Neuberger Berman, told Barrons he thinks coal stocks are still undervalued. While Westpac senior economist Justin Smirk warned BusinessDay that a shift towards gas and nuclear energy could weigh on future margins in the coal sector, a rebound of the global economy remains a bullish indicator for the sector. National Coal (NCOC), Patriot Coal (PCX), and Headwaters (HW) are all up by more than 14% over the last month, while Yanzhou (YZC), Natural Resource Partners (NRP), and Penn Virginia Resource Partners (PVR) have all turned negative for the period. Nearly all coal miners have enjoyed a rally over the last five trading days. Massey Energy (MEE) and Walter Energy (WLT) are both up by over 8% for the period, as are International Coal Group (ICO) and James River Coal (JRCC). As of this writing, the Coal Stocks Index is one of the 15 cheapest tickerspy Indexes by price to earnings, with an average P/E ratio of just 11.6. Tags: ACI, BTU, CNX, HW, ICO, JRCC, MEE, NCOC, NRP, PCX, PVR, WLT, YZC 
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September 15th, 2009 at 2:33 pm
Coal still has plenty of room on top. Everything else is maxed out. Is there anything remotely comparable to FDG (Fording), which proved a bonanza for those who hung on. Any other Canadian coal producers?
October 5th, 2009 at 12:48 pm
I think recently uplisted Puda Coal (NYSE: PUDA) , who had significant news from China last week is worl a good long look before the analysts get ahold of it.
This consolidation win of 3.6M ton anual coal capacity in addition to their existing washing business (whcih brought in .97/share in 2008) should put them over 42/share in earnings.
http://finance.yahoo.com/news/Puda-Coal-Receives-Final-prnews-2580073087.html?x=0&.v=1
October 27th, 2009 at 3:05 pm
Small cap and China–hard to warm up to that combination, esp. since YZC has been mostly burning smoke this year. I see Patriot is up over 15% today and that insiders were buying. Wonder if it’s a buy-out speculation.
January 11th, 2010 at 8:19 pm
PCX has been onward and upward, and simply looked too easy this morning when it headed for the sky after an upgrade along with its scandalously low P.E. ratio. Nevertheless, I went after it fearing it might go out of sight, only to be whiplashed hard. It went from a couple of points up to well down on the day. Still, unless that P.E. is a complete ruse, the PCX looks like an interesting hold.