Jim Cramer's Best Blogs

Coal's been carried up with petroleum, and if you think that no value's been created here and oil is going much lower, then these are fantastic shorts: Peabody (BTU Quote) down to $20 and Arch Coal (ACI Quote) to $22. Their declines from the highs are severe, but the next leg would be even worse.

Coal travels by train: Look out, Union Pacific (UNP Quote) is going to $34 and CSX (CSX Quote) to $30 and Burlington Northern (BNI Quote) to $46. Again, this is if you think rails have created no value and have no particular competitive advantage. Rates would be rolled back and costs are going up, so that would be devastating -- I don't know if these prices are representative, but it is reasonable in the bears' view that nothing was created. Infrastructure's way overvalued if you roll back the move that started a little more than three years ago. Fluor (FLR Quote) traded at $29 -- monster good short, and that's the best of the group. Caterpillar (CAT Quote) would recede to $41: excellent short. Deere (DE Quote) would get cut in half to $32 -- if, of course, you believe that the inventory declines in food and the switch to ethanol will reverse.

The best short would be Potash (POT Quote), which launched right about then at $30. That's a tempting one (perhaps done against Terra Nitrogen (TNH Quote), which has a good dividend, if you are worried). Agrium (AGU Quote) was at $20, by the way. I have to admit -- even after these declines, I don't know if I could resist shorting these based on their charts, even though the fundamentals seem darned great.