Financial Advisor Update

Here Are the Top 15 'Un-Earth Day' Stocks

Stock quotes in this article: BTU , WLB , ACI , FCL , FDG , BHP , TCK , JOYG , BUCX  

Formerly known as Valero LP before being fully spun off from the refinery giant, NuStar is one of the largest independent operators of terminals and pipelines for the transportation of gasoline, diesel and ethanol, with 6,200 miles of pipeline and 35 million barrels of storage capacity.

To serve the fertilizer industry, NuStar also has plans to expand its current 2,000-mile ammonia pipeline that runs from the Gulf coast of Mississippi to Nebraska and Indiana. And in an effort to become a major player in asphalt -- a neglected niche in the industry which its veteran chairman believes will become a premium product -- NuStar purchased two plants this month.

Its chairman, a Valero founder and former CEO, put some of his own skin in the deal by buying $2 million worth of his company's shares on the open market on April 13 and March 29 at just a touch below the current price.

Now, for the unicorn chasers out there, I will throw you one idea for Un-Earth Day, too. Small-cap Darling International(DAR Quote), which collects used cooking oils and animal fats from restaurants and refines them into tallow, grease and proteins for the soap, pet food, cosmetics, livestock and leather goods industries, and now for biofuels. Its veteran managers know they have a formerly neglected commodity that could become very valuable and are considering plans to build biodiesel refining facilities to take advantage.

Darling is very cheap: At $7.30 a share, it is trading at around 16 times next year's estimated earnings per share despite growth well north of 25%.

As a skier, camper, cyclist and card-carrying Sierra Club member since the '70s, it doesn't give me any pleasure to make these observations. But it's valuable for investors to see the world as it really is, not as they wish it to be -- and after all, you can always tithe 25% of your profits to an environmental cause.


Un-Earth Day Portfolio
Company name Market cap 4/23/07 price
Peabody Energy (BTU) $12.7 billion 48.22
Arch Coal (ACI) $5.2 billion 36.5
Westmoreland Coal (WLB) $217 million 24.07
Fording (FDG) $3.5 billion 24.07
BHP Billiton (BHP) $144 billion 49.04
Teck Cominco (TCK) $16 billion 77.02
Joy Global (JOYG) $5.4 billion 49.94
Bucyrus International (BUCY) $1.9 billion 60.27
Metso Oyj (MX) $7.9 billion 56.33
ABB Ltd. (ABB) $40 billion 18.75
Union Pacific (UNP) $31.5 billion 116.15
CSX Corp. (CSX) $19 billion 44.72
ADA-ES (ADES) $109 million 19.45
NuStar Energy (NS) $3.2 billion 68.5
Darling International (DAR) $607 million 7.52

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At the time of publication, Jon Markman owned Peabody Energy and Teck Cominco.

Jon D. Markman is editor of the independent investment newsletter The Daily Advantage. While Markman cannot provide personalized investment advice or recommendations, he appreciates your feedback; click here to send him an email.

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