ARLP, formerly known as Mapco Coal, produces and sells coal to utilities and industrial users in the U.S. ARLP performed fantastically well relative to the S&P 500 until it peaked at 45.58 in August 2005. Since then the price has declined close to 25%, but recently ARLP has been bid back up every time it has dipped below 34, forming a large descending triangle with bullish implications. ARLP stock also looks cheap according to conventional valuation measures and the dividend yield is 5.78%. There is a good dividend history too. I think the risk-reward ratio is starting to look attractive.
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Yes, the Democrats will be bad for the coal business, the economy has been weak, and coal prices have been declining. But Alliance Resource Partners, L.P. (NASDAQ:ARLP) owns 549 million tons of coal reserves. Like it or not, this is an energy source that the United States will have to rely on in the future.