"Green investing and clean energy may be the politically correct topic at cocktail parties, but coal is the economically correct vehicle for investors," says Ronald Rowland and Brandon Clay.
The editors of All Star Investor explain, "Coal has been an energy source for millennia -- and is still the number #1 source of energy for electric power plants in the world." And, they add, "One of the best places to invest in coal is Consol Energy (NYSE: CNX).
"Prehistoric Chinese are said to have used coal for heating. According to Roman historians, Britain burned coal in the first century. Throughout history, coal has been the primary source of heat in homes.
"Rapidly industrializing nations like China are still dependent upon coal for energy. Overall global consumption has not diminished either. Coal fuels 48% of electricity plant generators. And the trend is heading upward – probably for the next 30 years. Despite the deafening rhetoric, coal is not going away anytime soon. Investors should take notice.
"Consol Energy is a growing global leader in coal production and distribution. Compared to larger coal companies, Consol has kept expenses low.
"Their profit margins are running at 7.5% versus Peabody Energy at 5.8% and Westmoreland Coal at -4.3%. Moreover, their diversified offering in oil, timber, and energy services continues to deliver results to their growing bottom line.
"Consol's prospects look good too. Because they own 70% of their coal reserves they are less hampered by mining acquisition costs. Management is taking advantage of global demand. Growing exports at over 18% a year, Consol is well-positioned for continued growth in the international energy market.
"Technically, the stock's chart suggests investors are starting to take notice. CNX has broken through overhead resistance and there does not appear to be anything else to stop it. Natural resources are near the top of our rankings right now.
"We're not promising a meteoric rise, but the fundamentals support continued appreciation in the sector. Consol will be a great place to grab those gains if they happen. For an economically solid play on coal and natural resources, go with CNX."
Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.











Reader Comments (Page 1 of 1)
4-29-2008 @ 9:15AM
Bkonnek said...
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