Coal May Be a Bit Too Perfect Here

The fundamentals for coal could not be better. Worldwide shortages, best-in-show coal mined here, fantastic possibilities for emissions controls that will, if anything, solidify coal as our own oil -- we have enough of it. "A new era of coal demand," Peabody Energy (BTU - commentary - Cramer's Take) said yesterday. Black is the new green -- yep, heard that, too!

But Goldman blasts them today. Why? Everything's perfect, right? Goldman's worried about being in at the peak, and that's dangerous. Goldman wants to keep you out of trouble with this one, reminding you that in the end, coal -- like everything else -- can be priced for perfection, and there is no perfection in an imperfect world, at least no perfection that lasts.

You know what this reminds me of? The fear I have for ag stocks. The other day, when I once again examined the bull case that was laid out by Monsanto (MON - commentary - Cramer's Take) at the Goldman Sachs ag conference, I was reminded that here's a company that sells at more than 30 times earnings. That's a tough multiple to swallow. It is clear that everything is going Monsanto's way: worldwide fuel shortage and worldwide food shortage.

But it, too, is priced for perfection. Like Goldman Sachs with coal, I don't want you to be caught at the top. Now, all that said, all I am saying is you want to take something off the table, not all. It's greed that I am trying to stop, it is discipline that I like to enforce.

I think Goldman's being really prudent with this call. It deserves its due; nice job.

At the time of publication, Cramer was long Goldman Sachs.

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