12 Coal Stocks to Help Fuel Your Portfolio

Coal is the largest single source of fuel in the world for the generation of electricity. Seventy-five percent of coal is used for the production of electricity, and the United States consumes about one billion tons of coal each year.

Here are some other interesting global facts about coal:

China and India use about 1.7 billion tons annually.

Coal is the fastest growing energy source in the world.

China was the top producer of coal, with almost one-third of the world's share.

The U.S. is the second largest producer of coal.

The largest exporter of coal is Australia.

Coal is found on all continents except Antarctica.

There is enough coal to provide the entire planet with all of its energy for 155 years, 285 years, or 600 years, depending on what source you use.

Anglo American PLC (AAUK), which trades on NASDAQ, is one of the largest mining companies in the world, with mining operations in the Americas, Australia, Asia, Africa, and Europe. Its mining operations included coal, along with gold, platinum, diamonds, and other types of metals, and minerals. The stock has a forward P/E of 11.6.

Arch Coal Inc. (ACI) mines, and sells low sulfur coal, with 2.9 billion tons of coal reserves and mining operations in Colorado, Kentucky, Utah, Virginia, West Virginia, and Wyoming. It has a P/E of 23, and a PEG of 1.66. It generates a yield of 0.8%.

Alpha Natural Resources Inc. (ANR), is a producer of steam, and metallurgical coal, with 548.6 million tons of coal reserves. The stock has a P/E of 12.6, and a PEG of 1.85.

CONSOL Energy Inc. (CNX)mines, and sells steam coal, primarily to electric power generators. It is also in the business of producing metallurgical coal. Its P/E is 23, the PEG is 1.68, and the yield is 0.6%.

Foundation Coal Holdings Inc. (FCL) extracts, cleans, and sells coal to electric utilities, steel producers, and other industrial companies. It has a PE of 77.8,and a PEG of 1.34. The yield is 0.5%.

International Coal Group, Inc. (ICO) produces, processes, and sells steam and metallurgical coal. The stock has a forward P/E of 28.9.

James River Coal Co. (JRCC) mines, processes, and sells bituminous, steam, and industrial-grade coal. The company is generating negative earnings. Its net loss for the quarter was 46 cents per share, which was down from a profit of $.08 cents per share, for the first quarter in 2006.

Massey Energy Co. (MEE) produces, processes, and sells steam and metallurgical grade bituminous coal. It has a P/E of 31.2, and a PEG is 0.49. The yield is 0.6%.

National Coal Corp. (NCOC) mines, processes, and sells bituminous steam coal. The company has had negative earnings. Its net loss for the period ended March 31, 2007 decreased 22% to $6.0 million, versus a $7.7 million loss for the same period last year.

Peabody Energy Corp. (BTU), owns 40 coal operations in the United States and Australia, that have about 10.2 billion tons in reserves.. This St. Louis, Missouri-based company has been around since 1883. The stock has a P/E of 24, and a PEG of 1.04. It pays a small dividend of 0.5%.

Westmoreland Coal Co. (WLB) produces and sells coal from surface mines to electric utilities. Its net income applicable to common shareholders was $0.96 per diluted common share, for the quarter ended March 31, 2007, versus $0.60 per diluted common share, for the same quarter last year.

Yanzhou Coal Mining Co. Ltd. (YZC), is a Chinese company that mines, and sells coal in China, and Australia. It has a P/E of 34.7, and its yields is 1.5%. It has paid dividends annually for nine years.

Disclosure: The author does not own any of the above.

Comments

[Gray Bear:]

Why omit NRP? NRP has high quality reserves, good yield, avoids operating risks and has far-sighted quality management

2007 Jul 09 11:11 AM

[dcappe10:]

Coal stocks are an interesting pick because it still remains attractive for long-term play. Many factors continue to drive the demand for coal upwards, therefore, increasing coal stock as a whole. I recommend this report i found, it has been very valuable to me so far...it is a little bit more concise, focusing on a few selected stocks that possess all the factors of a rising stock.

www.whiskeyandgunpowde...

Cheers!

2007 Jul 19 04:23 PM

[streambuilder:]

The article you recommend is hyping FCL in typical rhetoric. Note the production data cited in 2005 show somehwer around 44 million tons, but the shipped tons that year are cited in pounds, showing an inventory build in 2005 of around 10 million tons with no explanation. And no accounting for the production of the "other twelve exciting mines". Now, FCL may be a fine company, and a super investment, but when I read that kind of sales pitch I get very suspicious and stop reading. But thanks for the info anyway.

2007 Oct 21 09:18 PM