Coal is very bullish But Time to Switch From BTU to other dirt cheap coal players, JRCC, PCX, ACI!
I speak for the US coal sector, not just individual coal stocks. Read why we see a super bull cycle in US coal sector:
But BTU fell from $70-ish to here. You have a room of roughly double from here. Mean while, other coal players had fall much more, and have much bigger room to gain in the next few months.
Consider switch some from BTU to JRCC, PCX, ACI. They can gain quadruple to even ten fold.
FWIW... I sold my small position in Arch and bought Peabody
I want to own depressed assests with a global footprint...thus Peabody.
Would re-buy Arch if we see $7, which I think is certainly possible
Time to switch some from BTU to JRCC and PCX. They are much cheaper and has MUCH BIGGER percentage to gain. In the 2007/2008 coal rally JRCC went from $3.56 to $62.83, a gain of 1765%, in just ten months. This is the kind of gain now way BTU can achieve.
...i have a trading rule. trade only the best quality, top notch companies. if you get into trouble, they will ALWAYS come back.
BTU instead of PCX
SLB instead of WFT
DVN instead of COG
SWC instead of PAL
Don't you want 1765% gain much beter than 228%? In 10 month!
I would personally want to get the 1765% gain, not the 228% gain.
That was precisely what happened in the 2007/2008 mini coal rally.
On Aug. 16, 2007, JRC was at the low of $3.56 and BTU was at $87.70. Both were poised to go up as coal begin to rally. Which one would you want to buy?
Ten months later on June 19, 2008 JRCC reached $62.83, gaining 1765% from the low of $3.56.
It took another 5 day for BTU to reach its high on June 24, 2008, to mere %87.70. A gain of 228%.
I would like 17 fold gain than a double.
Don't you want to get on board JRCC now? It's history repeating itself.
Timne to switch some BTU gains to buy JRCC at further discounted price.
It's about fundamentals of US coal, which is extremely bullish. All coal stocks will do very good. But you have much more to gain percentage wise in JRCC and PCX.