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Coal -is Doing Just Amazing
Sectors: Computer and Technology
, Construction
, Finance
Symbols: ANDW, ANR, BTU, MEE, WLT
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Earlier this month, during a period the dollar rallied a whopping 2% and we were told "the strong dollar is coming!" and all commodities were selling off in response I wrote in this piece ( May 1: Walter Industries - the Most Fascinating Company) I am trying to hand you a gift here, so that you make enough money so that EVERY reader can invest in my mutual fund when we launch in 2009 (right?) - remember, coal is going to be next year's fertilizer... with CNBC anchors aghast at coal and wondering "where did this all come action come from, I thought the bubble ended last year with that stupid potash!". I'm telling you now, a year ahead of time. I'm using Alpha Natural Resources (ANR) and Massey Energy (MEE) more specific for the metallurgical coal but any coal name has some exposure. (Apr 8: Changing Coal Allocation - Peabody Energy Out - Alpha Natural Resources In) I did a full analysis in that entry comparing the 2 names and potential profits/upside.And.... Missed fertilizer? Get coal. So you can tell your friends next year you were there first. Come back in 1 year, book some profits, send check to my fund and we are all happy. In the meantime, you can sort of laugh quietly to self when CNBC tells you it's time to get out because the dollar will be going up 7% vs the Euro in the next 2 months.Rarely do I pound the table or use that sort of language (above) but this was just a totally missed opportunity by the Street.... further, in this piece (May 5: Alpha Natural Resources Booming Earnings - Just the Start) I wrote As I keep saying, metallurgical coal is about where fertilizer was 15 months ago - we have a long wave of earnings estimates upwards coming in the year+ ahead, with the biggest pushes up in earnings coming in about a year. Alpha Natural Resources (ANR) is up about 7% premarket as I check off a fabulous earnings report.... just getting started in a long and winding road up over the next year I believe. I wrote a piece on fertilizer in October 2007 about just how wrong these analysts (who are supposed to be industry experts and just follow one sector) were...
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