% | $
Quotes you view appear here for quick access.

Arch Coal Inc. Message Board

  • fuzzhead72 fuzzhead72 Jan 3, 2007 4:35 PM Flag

    Should we invest in ACI?

    I am interested in ACI. I read the article in Kiplingers personal finance, which said it was a good buy at $43. I held off on buying while I looked into the stock more. Then it dropped down to $30, and then down into the $28 range. I started to wonder if it was going way down into the mid, or even lower 20 range for some reason.

    Would anyone like to express their take on this company, and why it is going down right now? I am considering investing about 40% of what we call our "car fund", since that is what the money is earmarked for. I like stocks that have good potential to return 15% in the next 6 months or so, and it seems like this one might do that.

    However, I am worried about the company debt load as well. It is pretty big, and normally I stay away from businesses that have large amounts of debt. In this case, it appears to be a good sort of debt, since they were using their money to buy strategic low sulfur coal, which may be a great long term investment.

    I never realized that coal prices might be tied so much to the weather, either.

    Anyway, I will look back here tomorrow morning and see whether the majority of replies believe that this is a decent short term (6 month) investment. If not, then I will look elsewhere for another way to put our money to work.

    SortNewest  |  Oldest  |  Most Replied Expand all replies