This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Coal Stocks: A Year in Review

Stocks in this article: ACI BTU LYRTF CERX ANR CNX D NBL

Along those same lines, I have to believe that both Peabody Energy and Arch Coal will see some modest gains next year given that they are the two leaders in terms of U.S. coal production. They should enjoy the benefits of government contracts that likely eluded them this year.

While I'm not as infatuated with Peabody and Arch as I am with Alpha Natural, I don't envision any recovery that does not immediately benefit either company. Arch Coal has come under criticism for recent performances, but I was nonetheless pleased with management's improved profitability, even if the result was a $2 million loss. Relative to the prior quarter's loss of $60 million, I don't think it's fair to complain.

Finally, I would be remiss without having mentioned CONSOL Energy (CNX), which has posted 17% year-to-date gains. With the company's ambitions of entering natural gas, management seems discontent with CONSOL's already-established elite status.

The company has already closed a $3.5 billion deal to offload its West Virginia coal mines. And CONSOL has begun to work with Dominion Resources (D) and Noble Energy (NBL) to acquire drilling rights to natural gas fields. Management is not wasting any time to escape a coal industry that has left behind so much carnage. Who can blame them? The only question is: How quickly they can execute to realize the sort of value they envision returning to shareholders?

Coal has never been as sexy as, say, technology or banking. But I believe what has occurred in this industry the past couple of years is on par with the tech bubble and credit crisis. Unlike those sectors, coal has been depressed for the better part of a half decade. Will there ever be a recovery?

Coal mining has always been considered a hazardous business. But investing in it has proven equally dangerous. As with CONSOL, there will be some winners in 2014. I believe Alpha Natural, Arch Coal and Peabody will be relative outperformers. But wear protective gear and a hard hat before you buy.

At the time of publication, the author held no position in any of the stocks mentioned.

This article was written by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs