Morgan Stanley offers its favorite utility and coal stocks to play current dynamics in the coal...

|By:, SA News Editor

Morgan Stanley offers its favorite utility and coal stocks to play current dynamics in the coal and natural gas market. Among utilities, Calpine's (CPN) efficient nat gas-fired plants enjoy a large arbitrage against inefficient plans, and Exelon's (EXC) big nuclear fleet benefits from higher nat gas prices. The firm prefers exposure to met coal over thermal coal; its top pick is Walter Energy (WLT).