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TheStreet Open House

A Coal Stock That Could Soar With a Romney Win

Stocks in this article: CNX

NEW YORK ( TheStreet) -- Pennsylvania is the fourth-largest coal producer in the U.S. Pennsylvania is also an all-important swing state. Gov. Mitt Romney has been courting the coal miners and the coal producing states, claiming that he will help to create a friendlier Environmental Protection Agency environment for them.

One of the very best stocks that I ever owned was a coal stock. Remember the run that commodities had from about 2002 to 2008? Coal stocks, copper stock, steel stocks soared as the global economy boomed and cranes in China dotted the land.

That all came to an end in 2008 as the financial crisis hit, the global economy slowed and the U.S. dollar began to strengthen. During that commodity boom, the stock of Consol Energy (CNX) surged from $6 per share to $119 per share! Now the stock trades at $34.39. Consol was a $25 billion dollar company, now it is just slightly under $8 billion.

I have been one of the few stock pundits that have been predicting a win by Gov. Romney for quite some time. I believe that Jim Cramer has it wrong. My prediction has been looking better and better lately. Could a win by Romney make this stock soar once again?

Consol Energy is headquartered in Canonsburg, Pa. and the company produces coal and natural gas for energy and raw materials markets.

Data from Best Stocks Now App

The stock has delivered some very dicey performance since its peak just over five years ago.

Data from Best Stocks Now App

As you can see, the 10-year performance of the stock is still quite good, but you have to remember those numbers include the company's golden years. The one-year, three-year and five-year performance is another story altogether. It should also be noted that the stock took a 59.8% beating in 2008.

My overall performance grade is based on short-term, intermediate-term and long-term performance. The stock currently earns an overall performance grade of C-. This is not very good. However, my stock selection method combines performance with valuation. Let's take a look and see if the shares offer a compelling valuation right now.

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