"Coal accounts for more than 70% of China's electricity," says Tony Sagami. In Uncommon Wisdom, he looks to an ETF poised to benefit from long-term rising coal demand.

The advisor explains, "China's coal consumption is growing, and it is building coal-powered power plants at a breakneck pace.

"Why? Because they are much cheaper to build and operate than any other power-producing option. China is power starved, and coal is the main resource used for generating electricity in the country.

Continue reading Fired up over coal ETF

Fired up over coal ETF originally appeared on BloggingStocks on Mon, 21 Sep 2009 11:00:00 EST. Please see our terms for use of feeds.

"Any coal-producing company located in and selling to China is going to be printing money," says Asia region stock speciality Tony Sagami.

In his The Asia Stock Alert, he explains, "And in my opinion, the best to profit from that sooty need is Yanzhou Coal (NYSE: YZC), a fully integrated company that does it all; the company mines, prepares, processes, sells and transports coal." Here's his bullish review.

"The concept of investing in coal may not sound very exciting, but it is when you realize we're talking about the primary source of power for a country with 1.3 billion people.

Continue reading Yanzhou Coal (YZC): All fired up

Yanzhou Coal (YZC): All fired up originally appeared on BloggingStocks on Mon, 01 Jun 2009 13:30:00 EST. Please see our terms for use of feeds.

Coal concern Alpha Natural Resources, Inc. (NYSE: ANR) has spiked more than 20% today on the heels of its first-quarter earnings report. The company reported a 61% improvement in net income, which rose to $41 million, or 58 cents per share, compared to $25.5 million, or 39 cents per share, in the first quarter of 2008.

Revenue for the period inched higher to $424.4 million. ANR's profit easily exceeded Wall Street's expectations; analysts were looking for a profit of 48 cents per share on $515.5 million.

ANR gapped higher with the sound of the opening bell today, extending its year-to-date advance of 56.4%. If the stock keeps climbing, it could soon have a chance to challenge resistance from its 10-month moving average, which is currently hovering in the $33 neighborhood.

Continue reading Alpha Natural Resources crushes profit estimates, spikes 20%

Alpha Natural Resources crushes profit estimates, spikes 20% originally appeared on BloggingStocks on Wed, 06 May 2009 10:10:00 EST. Please see our terms for use of feeds.

"Peabody Energy (NYSE: BTU), the largest private market coal firm in the world, had a great 2008," says Jack Adamo who has recently added the stock to the buy list of Insiders Plus.

"Peabody has extensive holdings in the U.S. and Australia, the latter serving the China/Asia Pacific markets. It sells steam coal for heating and utility use, and coking coal for steel making.

"Peabody has had some decent iInsider buying in the last few months -- about 30,000 shares -- not enough to get too excited about, but encouraging. There were also 27,000 options exercised, most of it at very low prices, for which the holder took no profits.

"That's also a good sign, particularly since those exercises come with a tax bill, and shares weren't sold to pay it. It implies faith the stock will rise.

Continue reading Coal insiders eye Peabody (BTU)

Coal insiders eye Peabody (BTU) originally appeared on BloggingStocks on Fri, 20 Feb 2009 13:40:00 EST. Please see our terms for use of feeds.

"One of the sectors I want to buy when it's on sale is the coal business," says Bryan Perry, editor of The 25% Cash Machine. Here, he looks at Fording Canadian Coal Trust (NYSE: FDG).

"Fording Canadian Coal Trust is an open-ended mutual fund trust and one of the largest royalty trusts in Canada. The trust makes quarterly distributions to unitholders using royalties received from its 60% interest in the metallurgical coal operations of the Elk Valley Coal Partnership.

"It is a beneficiary of the booming global steel industry where FDG's business is concentrated. Despite interruptions in coal production and delivery that may cause wild price swings, the underpinnings to the supply and demand equation for metallurgical coal are solidly bullish.

Continue reading Fording (FDG): Coal trust fires up growth & income

Fording (FDG): Coal trust fires up growth & income originally appeared on BloggingStocks on Fri, 25 Jul 2008 14:30:00 EST. Please see our terms for use of feeds.

"We're continuing to emphasize conventional energy, solar, shipping, agriculture, and commodities," says Harry Domash, who adds, "But one industry we've overlooked so far is coal."

In his Winning Investing, he explains, "This month, we're adding two coal industry picks. One, a short-term play to capture the action in hot coal mining stocks, and the other, a long-term dividend-paying investment."

"We've avoided coal primarily because environmentally speaking, coal is bad news. Coal is mostly used to generate electricity and to power steel plants. Crude oil prices are so high because supply can barely meet demand.

"Think about what would happen to oil prices if coal wasn't available. Due to increasing global demand, coal prices are moving up dramatically and it doesn't make sense for us to ignore that.

"For longer-term investors, we recommend Natural Resource Partners (NYSE: NRP), a master limited parternship. The MLP owns coal properties in the Appalachia, Illinois Basin, and the Western U.S. NRP leases its properties to mine operators.

Continue reading Double play on coal: For investors and speculators

Double play on coal: For investors and speculators originally appeared on BloggingStocks on Mon, 23 Jun 2008 11:35:00 EST. Please see our terms for use of feeds.

"Oil prices have made the headlines recently," says Martin Hutchinson in The Money Map Reporter. "But the miracle fuel of the 19th Century is coal, the forgotten fossil fuel."

"Coal is located primarily in politically stable, friendly countries - most notably the U.S. market itself. Coal prices have zoomed northward during the past year. The current spot price is around $135 per metric ton, more than double the level of a year ago. Meanwhile, coal production is running way ahead of forecasts.

"In 2005, the World Coal Institute reported production of 4,970 million metric tons, up 78% over 25 years. The main reason for coal's growth is that 80% of China's power needs and 65% of India's come from coal-fired stations.

"Since both India and China are expected to quadruple their power consumption by 2030, most of that increase must come from coal-fired stations. What are the best buys in the sector?

Continue reading Coal: The 'real black gold'

Coal: The 'real black gold' originally appeared on BloggingStocks on Thu, 08 May 2008 13:28:00 EST. Please see our terms for use of feeds.

"As the price of energy soars, I am convinced wealthy countries will turn to the one remaining fossil fuel that is still in abundance: coal," notes growth stock expert Jim Powell.

The editor of Global Changes & Opportunities Report, "Given the high price of oil, the coal-to-liquid fuel industry is starting to take off. One company that should profit handsomely is Headwaters (NYSE: HW)." Here is his review.

"To make coal available for most applications, it must be converted to gasoline and diesel fuel. Fortunately, that process is cost effective when oil costs over $40 a barrel. Since oil is now over twice that price, the coal-to-liquid fuel industry is starting to take off.

"Coal isn't without its critics. When burned, it gives off greenhouse gasses and other pollutants. However, technologies exist that solve those problems. With oil at current levels, it pays to implement the cleanup
processes and put coal to work.

"Headwaters should profit handsomely from the growing demand for coal. The company developed technology that changes the chemical composition of coal into high value products, including petrochemicals that are usually made from oil.

Continue reading Coal-to-liquid fires up Headwaters (HW)

Coal-to-liquid fires up Headwaters (HW) originally appeared on BloggingStocks on Wed, 09 Apr 2008 10:35:00 EST. Please see our terms for use of feeds.

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Rentech (ASE: RTK) is the favorite speculative idea from Keith Fitz-Gerald, editor of The Skeptical Investor.

The advisor and money manager explains, "Rentech, a $600 million company, offers a fair shot at decreasing our dependence on foreign oil in a time frame that makes it almost immediately relevant. This is significant because it represents the first widely applicable technology I've seen work at price points that make it practical.

"Rentech, however, has a patented technology that can convert coal to oil, gasoline, or even aviation fuel at a paltry $35 a barrel. Not only is this far cheaper, but with oil now settling in the $50 to $60 range, it's going to be a lot more profitable, too. It's also an area that is being largely ignored, which, of course, makes it appealing to me.

"Most people think coal is dirty, stinky, and causes cancer. And they're right! But, there's also enough of it here in the U.S. to supply our anticipated energy needs for the next 250 years. This makes it more appealing, usable, and even convertible than all other alternative energy sources combined when viewed in the context of our energy continuum.

Continue reading Top Picks 2007: Fitz-Gerald sees Rentech cleaning up with clean coal

Top Picks 2007: Fitz-Gerald sees Rentech cleaning up with clean coal originally appeared on BloggingStocks on Thu, 21 Dec 2006 08:30:00 EST. Please see our terms for use of feeds.