Coal-Related Stocks Will Keep Chugging Along

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The coal move must gall all of those who read the papers and understand that neither John McCain nor Barack Obama favors coal. It does seem very counterintuitive that neither Peabody Energy(BTU Quote - Cramer on BTU - Stock Picks) nor Arch Coal(ACI Quote - Cramer on ACI - Stock Picks) makes coal that the Democrats and Republicans can get behind.

The senators from the coal lands -- Wyoming and West Virginia -- have no clout. We don't even have rules dictating what coal plants we will allow! That's why I can't get behind McDermott(MDR Quote - Cramer on MDR - Stock Picks).

But then look at Burlington Northern's(BNI Quote - Cramer on BNI - Stock Picks) stock. Look at Union Pacific's(UNP Quote - Cramer on UNP - Stock Picks) stock. Or Norfolk Southern(NSC Quote - Cramer on NSC - Stock Picks). That's coal. That's coal going overseas. That's coal going to China. Our coal is as good as any coal when it comes to the unregulated markets. Coal hasn't appreciated nearly enough to get less competitive than oil. It is much more easily transportable than natural gas.

It is the ideal transferable fuel. Always has been.

So the group's not quitting.

The only barrier to making more money for Arch and Peabody isn't emissions or the cost of shipping -- it is that cheap to ship -- it is getting at the hoards of coal we have. We are sitting on mountains of coal, but the only way to get at it is with machines, typically made by Joy Global(JOYG Quote - Cramer on JOYG - Stock Picks). The company reports next week. How this quarter is, isn't clear because of the rising cost of steel. But when you look at the lead times of its machines and the need for them, do you think it they can say anything but the business is fabulous?

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