Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Could Natural Resource Partners Be Seeing A Bottoming Out In Coal?

Investors in the coal sector have been waiting for a light at the end of the tunnel for some time now, but so far any new lights have just been another oncoming train. Natural Resource Partners (NYSE:NRP) has held better than most though, as the company's strategy of operating as a royalty-collecting lessor helps mitigate some of the operating issues that miners like Arch Coal (ACI), Cloud Peak (NYSE:CLD), and Alpha Natural Resources (ANR) have faced. It also has done the stock no harm to see management move in a similar direction to Penn Virginia Resource Partners (NYSE:PVR) and prioritize diversification away from coal.

Even with diversification, coal royalties are still two-thirds of the...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details