Coal Stocks Update. Remain Bullish

[ 1 ] February 17, 2011 |

As our blog readers know, after repeatedly discussing investment strategy with Fred and Rob at Lange Financial Services, we have been recommending Cliffs Natural Resources (CLF). Alpha Natural Resources (ANR), Peabody Energy (BTU), and Walter Energy (WLT) from significantly lower levels from the fourth quarter of 2010.

Today, CLF (92.88) released their earnings report for the 4th quarter.  They just blew the quarter away exceeding all estimates.  The shares are trading after hours now at $102.00, after closing the day at $92.88. We believe that after the gap opening tomorrow CLF remains a buy on any pullback. Gaps are usually filled but this one may not be filled for awhile due to a very strong outlook. We will update the company’s outlook after tomorrow’s conference call.

Further, we continue to recommend other metalurgical coal stock favorites- ANR (57.44), BTU (66.23), WLT (126.63). Our target prices for these stocks remain significantly higher than the closing prices today noted above, especially given the coal Super Cycle underway globally.

We recommend that readers continue to accumulate coal stocks.


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Category: Markets and Trading