COAL Update. Use Weakness To Accumulate Positions. Quick Update

[ 0 ] January 14, 2011 |

After discussing the situation with Lange Financial Services, we thought it relevant to make this post now implementing some of their thoughts on Coal.

We initially posted on January 5, 2011 that we remain bullish on Coal shares and would add to positions on weakness. We continue to be bullish on Coal, and Coal Shares. We would use weakness to accumulate some positions in quality Coal companies. We also think that the decline in Gold prices recently, and especially today, down over 2%, has exacerbated the share price declines in Coal shares like CLF, ANR, WLT, and BTU.

Brean Murray today updated their outlook on ANR and has a target of $80.00 per share with a BUY rating.

FBR Capital Markets raised their targets for Coal prices and estimates today as well. Their new targets on Coal Shares changed today to:

ACI $50 now $51
ANR $68 now $75
BTU $75 now $77
CLD $28 now $27
CNX $60 now $61
PCX $21 now $27
WLT $131 now $140
MEE $50 now $54
NRP $31 now $31

Additionally the market looks good with no real pressure and should trade higher. Even with some weaker than expected seasonal economic numbers the risk is in not being Long.

W&BR

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Category: Markets and Trading