Ben Barnald

Coal is the Next Fertilizer

It's all about energy crisis and USD fluctuation. Thursday 29 May was a test when Oil dropped by around $4, USD picked up against most currencies, and most US-denominated commodity stocks went down. Most Coal miners stock went down by average of 2.2%, so was KOL ETF. BHP dropped the most. I'm not sure if oil price can go beyond USD150/barrel as that will drive food and basic needs price to "unaffordable region" in most countries. However, if that happen coal stocks bubble will burst.

In US at the moment, most coal stocks have gone up ranging between 5 % and 11% of their 50 days moving average or between 14.5% and 33.7% of 200 days average price. ANR is exceptional. It has gone up more than 100% of its 200 days-average price. Yes, this is commodity and coal time but it certainly has its very tangible limit. I would say short term investment in this area is safer.