Arch Coal,Alpha Natural Resources and Patriot Energy should sell themselves to China.
When China and India corner the market for coal and NatGas spikes up we'll have to buy our own coall back. When homeowners watch their heating bills double this we'll see how long before they punish the democrats at the ballot box.
Arch Coal is an established (since 1969) business. With a little over $1 billion in cash, they have enough liquidity and experience to get innovative!
With that said, coal is a cheap commodity that is a necessity to our daily lives! In a world of financial crisis, it is better to use what is already cheaply available than to take risk, spend money and loss in the short run with building costs and other regulations in the process!
In the short run (within the next 4 months), holding ACI at its current price level and riding it up will be well rewarded!
Factor in the cyclical winter seasons, target price above our current price level (due to fiscal cliff fear), book value, 24% recent price drop because of the fiscal fear, awesome 3Q12 earnings AND PLACE YOUR BET.
Have you noticed that the biggest profits were made from the stocks that everyone hated. Tobacco and Oil to name a few than there's the banks, huge profits were made as long as you had the guts to buy when everyone was selling. T Boone Pickens was buying into Valero energy when cramer and fast money were saying sell. Than when Valero rallied 30% they suddenly became bullish.