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Ned Davis Research’s Neil Leeson calls coal his "sleeper pick" for a strong 2013, based on...

Ned Davis Research’s Neil Leeson calls coal his "sleeper pick" for a strong 2013, based on hopes for a demand pickup in emerging markets; China in particular has strategists convinced of stronger growth next year. If it all comes together, coal is a banged-up sector that would benefit, Leeson says, bringing the battered Market Vectors Coal ETF (KOL) with it.
Comments (10)
  • Macro Investor
    , contributor
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    Coal is dead for 2013 as US demand is shot, plus the moment extra demand comes to market from anywhere there is spare idle capacity ready to dump more coal in the market.
    21 Dec 2012, 05:19 PM Reply Like
  • J 457
    , contributor
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    Not even close. There is no spare idle capacity as all the majors have cut production throughout 2012. Stockpiles are low, global demand is all-time record highs. This will be THE sector in 2013 and most of the coals names will triple in value just like the homebuilders did in 2012. Position yourself now.
    21 Dec 2012, 11:47 PM Reply Like
  • Macro Investor
    , contributor
    Comments (7143) | Send Message
     
    There is no spare capacity after production has been cut? Isn't cut production the very definition of spare capacity? The more I read Stock Talk on SA the more confused I become.
    21 Dec 2012, 11:48 PM Reply Like
  • Bear Bait
    , contributor
    Comments (659) | Send Message
     
    I got into coal a little early. But I'm holding on to my long positions. Even JRCC with all it's troubles could have significant upside. I thought the coal stocks weathered today's storm quite nicely. In fact I was surprised at today period. I expected a massive sell off.
    21 Dec 2012, 05:23 PM Reply Like
  • J 457
    , contributor
    Comments (939) | Send Message
     
    FED is pushing 85 billion a month into this economy and risk assets will be the beneficiaries. The throw-away stocks of 2012 such, as ACI for coal or KWK for NG will roar back as we enter 2013.

     

    The success of the coal plays will not be from domestic use as Obama hates coal, instead it will be from exports to China and India. Companies such as ACI as paving the way today for continued increased exports into 2013. If the global ecomomy is in the tank today with record coal exports, just think what the price of coal will do when the recovery finally takes hold. ACI at $7.50 today is a gift and could easily be a triple in 2013. Look at the past price history. Even if we get to historical norm it breaks $20. Also look at historical NG pricing which coal will follow.
    21 Dec 2012, 11:58 PM Reply Like
  • Macro Investor
    , contributor
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    Is that why the Chinese Govt is regulating coal production to match shrinking demand?

     

    http://bit.ly/Vi3yaO
    22 Dec 2012, 12:02 AM Reply Like
  • SoldHigh
    , contributor
    Comments (983) | Send Message
     
    As natural gas prices creep up due to global demand, coal demand should increase.
    21 Dec 2012, 05:23 PM Reply Like
  • Macro Investor
    , contributor
    Comments (7143) | Send Message
     
    NH prices are going to drop in 2013 from weak demand. Thank global warming.
    21 Dec 2012, 05:24 PM Reply Like
  • J 457
    , contributor
    Comments (939) | Send Message
     
    Comments such as this continue to erode credibility of SA. The "contributor" didn't take two minutes to clance at 2013 NG futures and see the price difference between today and 2013. BHI announces rig counts dropping yet again as the NG suppliers are choking off supply to force up price. If there is a cold Jan-March as is forecast, NG will jump and coal will follow. I would expect NG at $5-6 by mid 2013.
    21 Dec 2012, 11:50 PM Reply Like
  • Macro Investor
    , contributor
    Comments (7143) | Send Message
     
    Shall we take that bet? Gas benefited heavily last year from a extremely hot summer and was used in electricity generation - air conditioning was on everywhere. This year it is going to be a mild summer per forecast. Plus December has been moderate.
    21 Dec 2012, 11:55 PM Reply Like
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