Best Coal Stocks to buy for 2012: Coal has been on a run, spiking up with oil, since both are used to produce energy.Demand for coal has been hot, especially from China, the world’s fastest growing economy and India, the world’s second fastest growing economy.China will still favor coal to meet its energy needs. India and other emerging markets such as Singapore and Malaysia are no exception to this, either. Coal will be in heavy demand in the developing world.Coal may have less importance as an energy source in the developing world. Already, the percentage of total energy produced from coal has been declining. But coal is also needed for steel making. And steel, once thought to be a dying industry, will not go away. Buildings, bridges, cars, airplanes and ships all need steel. Thus, coal, believed by some to be a dying industry, may prove critics wrong again.
To say 2012 has been unkind to coal stocks, is to put things mildly. As measured by the Market Vectors Coal ETF (NYSE: KOL ), the largest of the two ETFs devoted to coal stocks, has plunged 30% year-to-date. Part of the that slack performance can be tied to concerns that the global economy is slowing, which in turns spells bad news for a high-beta sector like coal.
Walter Energy, Inc. (NYSE:WLT) is the 7th most profitable stock in this segment of the market. Its net profit margin was 15.80% for the last 12 months. Its operating profit margin was 24.94% for the same period. Resistance area is $58.75 and support level at $53.
Peabody Energy Corporation (NYSE:BTU) is the 9th most profitable stock in this segment of the market. Its net profit margin was 12.77% for the last 12 months. Its operating profit margin was 18.97% for the same period.Resistance area is $37 and support level at $31. Q4 EPS of $0.98 misses by $0.34. Revenue of $2.25B (+25.7% Y/Y) misses by $90M. Shares -6.4% premarket.
Peabody Energy Corporation (NYSE:BTU) is the 9th most profitable stock in this segment of the market. Its net profit margin was 12.77% for the last 12 months. Its operating profit margin was 18.97% for the same period.Resistance area is $37 and support level at $31. Q4 EPS of $0.98 misses by $0.34. Revenue of $2.25B (+25.7% Y/Y) misses by $90M. Shares -6.4% premarket.
Alpha Natural Resources (NYSE: ANR): Alpha Natural Resources has one of the ugliest charts in the coal sector. That's a fact.Problems with the Massey Energy acquisition have plagued ANR, but the company is trying to right that ship and the deal has made ANR the largest U.S. maker of metallurgical coal. That's the coal grade prized by Asian steelmakers. At a price/book ratio of just 0.56 with a low price tag, ANR is kind of like a no-expiration call option on a coal sector rebound.Resistance area is $25 and support level at $15.
Arch Coal (NYSE: ACI): Lay ANR's chart over Arch's and you'd be hard-pressed to tell the difference. It's like choosing between awful and terrible. Trading at less than 5.5 earnings, Arch had a a gross margin of 25.12% and an operating margin of 11.58%. Resistance area is $17 and support level at $13.
Cloud Peak Energy (NYSE: CLD): Cloud Peak is trading at just 8.9 times forward earnings, so it's fair to say this coal play is edging toward “cheap” status. Also in Cloud Peak's favor is the fact that the company already has over 92 million tons on contract, the equivalent of its first 9 months in 2011.Resistance area is $21.11 and support level at $16.
Below these are the Top Coal stocks I am follow on 2012.
Ticker Company
AHGP Alliance Holdings GP L.P.
ARLP Alliance Resource Partners L.P.
ANR Alpha Natural Resources Inc.
AENYQ Americas Energy Co.
ACI Arch Coal Inc.
CHGY China Energy Corp.
CLD Cloud Peak Energy Inc.
CNX Consol Energy Inc.
EVEI Evergreen Energy Inc.
EXXAY Exxaro Resources Ltd. ADS
HNRG Hallador Energy Co.
JRCC James River Coal Co.
QMIN Kentucky Energy Inc.
LLEN L&L Energy Inc.
LBTG Liberty Coal Energy Corp.
NRP Natural Resource Partners L.P.
OXF Oxford Resource Partners LP
PCX Patriot Coal Corp.
BTU Peabody Energy Corp.
PVR Penn Virginia Resource Partners L.P.
PUDA Puda Coal Inc.
RNO Rhino Resource Partners L.P.
SCEI Sino Clean Energy Inc.
SCOK SinoCoking & Coke Chemical Industries Inc.
THRA Therma-Med Inc.
SGZH U.S. China Mining Group Inc.
WLT Walter Energy Inc.
WLB Westmoreland Coal Co.
WECFY White Energy Co. Ltd. ADS
YZC Yanzhou Coal Mining Co. Ltd. ADS
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