As our blog readers know, after repeatedly discussing investment strategyÂ with Fred and Rob at Lange Financial Services, we have been recommendingÂ Cliffs Natural Resources (CLF). Alpha Natural Resources (ANR), PeabodyÂ Energy (BTU), and Walter Energy (WLT) from significantly lower levels fromÂ the fourth quarter of 2010.
Today, CLF (92.88) released their earnings report for the 4th quarter. Â They just blew the quarter away exceeding all estimates. Â The shares are trading afterÂ hours now at $102.00, after closing the day at $92.88. We believeÂ that after the gap opening tomorrow CLF remains a buy on any pullback. GapsÂ are usually filled but this one may not be filled for awhile due to a veryÂ strong outlook. We will update the company’s outlook after tomorrow’sÂ conference call.
Further, we continue to recommend other metalurgical coal stock favorites-Â ANR (57.44), BTU (66.23), WLT (126.63). Our target prices for these stocks remainÂ significantly higher than the closing prices today noted above,Â especially given the coal Super Cycle underway globally.
We recommend that readers continue toÂ accumulate coal stocks.
Category: Markets and Trading